If you find yourself caught up in the real estate turmoil, are having trouble making payments on your home mortgage and are facing the possibility of losing your home, then you may be asking yourself, “which is better, foreclosure or short sale?”
Well, as you no doubt already know, neither is a great option and if there’s anything you can do to avoid then, do it. However, if you are facing the possibility of losing your home then it’s certainly a legitimate question. So which do you choose?
Here are a few things to consider when trying to make a decision between a short sale and foreclosure:
Some of the benefits of doing a short sale include:
- You are in control of the sale, not the bank.
- You may sleep better at night knowing who is buying your home.
- You will spare yourself the social stigma of the “F” word, foreclosure.
- Contrary to popular belief, you can be current on your payments and still effect a short sale.
- Your home sale will be handled like any other home sale.
How would either a Short Sale or a Foreclosure affect your credit?
While a short sale is not necessarily a derogatory mark on your credit because credit bureaus do not show the word “short sale” on your credit report, tt may say “pay as agreed” or “paid as less than agreed.” Some clients have reported drops in their crediting rating, anywhere from 50 points to 130 points.
In terms of the affects a foreclosure would have, a number of sources have reported that FICO scores usually drop anywhere from 200 to 400 points after a foreclosure, and a foreclosure will typically remain on your credit report as a public record for 10 years.
So while the ultimate decision is one you’ll need to consider carefully, in most cases a short sale is usually ‘the best of the worst’ and for most people is a much smarter decision than a foreclosure.
Filed under Foreclosed Houses, Real Estate Short Sale by 
As you might expect, with the turbulent real estate market we’ve seen for the past 2 years and with unemployment rates at record levels, the end result is a growth in the number of foreclosed homes in the Fort Mill SC area. And even though we’ve been lucky here in the Fort Mill SC area, we’ve still seen our fair share of foreclosed properties available.
And while it’s always a sad situation when someone loses their home to foreclosure, it also presents a great opportunity for those looking to buy a house at a great price. There really are some amazing deals available for foreclosed properties right now, especially if you know where to look and how to buy them.
One of the best opportunities for buying a foreclosed house at a ‘steal of a deal’ is HUD homes, or properties that were financed via an FHA loan and then reposed. I’ve personally helped 5 people in the past 8 months purchase HUD homes and every single one of them has gotten an absolutely fantastic deal on their property.
According to the government’s website about HUD homes:
What is a HUD Home?
A HUD home is a 1 to 4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim.
Who can buy a HUD Home?
Almost anyone! If you have the cash or can qualify for a loan (subject to certain restrictions) you may buy a HUD Home. HUD Homes are initially offered to owner-occupant purchasers (people who are buying the home as their primary residence). Following the priority period for owner occupants, unsold properties are available to all buyers, including investors.
So, if you’re in the market for a new home, it would definitely pay to take a look at purchasing a HUD home!
My only bit of advice would be DEFINITELY consult with an experienced real estate agent, and I don’t say that just to get you to call me (although that would be nice 
) While HUD would have you believe that buying one of their homes is an easy, painless process, it’s not. While most real estate transactions can be a stressful, frustrating experience at times, purchasing a HUD home is much worse.
You still have to go through all of the typical real estate paperwork and processes, but with a HUD home, you now have to do all of these things through a government agency, and as we all know, they aren’t always they easiest groups to work with!
Don’t let that discourage you though! Just make sure you work with an agent that has the experience and know-how to help make sure your HUD transaction goes smoothly and you’ll quickly be able to enjoy a fantastic new home at a great price!
Filed under Buy Your Dream House, Can't Miss Opportunities, Foreclosed Houses, Home Buyers by
Unfortunately, with housing market a bit shaky the last little while, a lot of foreclosed properties have resulted. While this has caused many once up-and-coming neighborhoods to decline, it’s also opened the door for many house hunters looking for a good deal.
While the Rock Hill SC and Fort Mill SC areas haven’t been hit nearly as hard as other areas across the country, and even within the Charlotte NC region, there are still a fair share of foreclosed properties available to those willing to do the work and assume the risk.
Here are 5 tips to keep in mind when considering a foreclosed home in the Rock Hill SC area:
1. Finding one has become easier
You don’t need to show up at courthouse auctions or comb through legal filings. These days many banks sell foreclosed homes through real estate agents.
To find listings, look on sites that specialize in foreclosed properties, such as realtytrac.com and foreclosurepoint.com. The local multiple-listing service often has selections as well. (The fact that the home is in foreclosure is not always highlighted in the MLS, but it’s often mentioned in the description.)
Finally, some agents specialize in foreclosures, so call your local realtor’s office and ask for a referral.
2. It’s best to buy from a bank
If you buy a foreclosed home at an auction before the bank repossesses it, you’ll have to pay in cash, and you usually cannot inspect the property. You may also later discover that there are liens against it.
When a bank takes back a home, however, it will clear any outstanding liens. Plus, when you buy a bank-owned property, you can inspect it beforehand, and you can finance the purchase with a mortgage. Leave your suitcase full of cash at home.
3. Bring in a contractor before you buy
Many foreclosed homes have been abandoned, some even vandalized, and they often require major repairs. “One mistake a lot of people make is underestimating how much work it needs and the cost,” says Rick Sharga of RealtyTrac.
To avoid getting stuck with a surprise bill, ask a contractor to give you an estimate of how much the restoration will cost and how long it will take. Many will do so for free in hopes of winning your business.
4. Bid low
Banks aren’t necessarily selling foreclosures at fire-sale prices; some are listed at market value, says Gene Hacker, a broker in Orange County, Calif. So be prepared to haggle. The bigger the inventory of foreclosed homes the bank has and the longer the property has sat, the greater your chances of nabbing a great deal, says Chris Matty of ForeclosurePoint.com.
Set your initial offer about 20% below market price – or more if your area has a lot of foreclosures.
5. Be prepared to wait
While some lenders are getting back to bidders within 36 hours, others are dealing with an enormous backlog that can hold up their response for as long as three months. While you wait, someone can trump you with a higher offer.
To boost your chances at scoring a home you love, have multiple properties in mind, and get your financing pre-approved before you bid. Even if the lender says it has another offer, follow up every week – these deals can often fall through.
These tips come courtesy of Amanda Gengler, a writer for Money magazine.
Filed under Charlotte NC, Foreclosed Houses, Fort Mill SC, Home Buyers, Rock Hill SC by
