What is the difference between a Foreclosure and a Short Sale?

The three biggest differences between a Fort Lauderdale Short sale and a Fort Lauderdale foreclosure from the stand point of a buyer of Fort Lauderdale Real Estate today are...

1) In a short sale the bank does not own the Fort Lauderdale Home or Condo, whereas in a foreclosure the bank is the owner of the property.
2) The time frame to complete a Fort Lauderdale Short Sale is much longer than a Fort Lauderdale Foreclosure. In a Fort Lauderdale Condominium it can be even longer if there is past due maintenance owed to the condo association.
3) Usually the condition of Fort Lauderdale Real Estate that has gone through the short sale process is far better than Fort Lauderdale Homes and Condominiums that has been foreclosed on.

Please remember, in the Fort Lauderdale Real Estate market there are exceptions to every rule but lets discuss these primary issues that distinguish Ft. Lauderdale Foreclosures from Ft. Lauderdale Short Sales in the market we face today in Fort Lauderdale Real Estate.

When the bank owns the property, a Ft. Lauderdale Foreclosure, there is motivation to sell. Once the bank places the property onto the Fort Lauderdale MLS, with a Ft. Lauderdale Realtor the average days on market is five. Often a bidding war ensues and the average Fort Lauderdale Foreclosure often sells for at or above asking price.

In a short sale, the bank does not own the Fort Lauderdale Home or Condo, and the goal is to get an offer in front of the bank, that makes sense in the current Ft. Lauderdale Real Estate market. Depending on the bank the process can take from 3 months, to well over a year. A Fort Lauderdale Realtor well versed in the Ft. Lauderdale Short Sale market can help to keep you away from the banks which simply are failing to embrace the process. The amount of sellers seeking this type of debt relief from Fort Lauderdale Home prices that have crashed has caused many banks to be simply overwhelmed with the process.

The last issue we mentioned above is condition. The Fort Lauderdale foreclosure process can be long, as the court system is processing more than they were ever equipped to handle. The uncertainty of the process forces many homeowners to leave their home and move on with their lives long before the process is final. Why would anyone wait to witness the day they lose their home? In contrast many Fort Lauderdale Real Estate owners stay in their home throughout the short sale process. The electric is on, the air conditioning is running, and they end result is a Fort Lauderdale Home or Condo that has been cared for until closing day. In many cases this cared for home represents a better value to the buyer, who has had to be very patient throughout the long process.

We at Eric Miller and Associates hope this helps explain the differences of these two processes and please remember we are here to help with all your Fort Lauderdale Real Estate needs.

For additional information contact us directly 954.383.8170 with any questions you might have about any Fort Lauderdale Real Estate. We are here to help.