Fort Lauderdale Foreclosures & Short Sales
What is the differance between a Foreclosure and a Short Sale?
In today's Fort Lauderdale real estate market there are two terms we are sure you have been hearing a great deal, Foreclosure and Short Sale. Many consumers do not understand the difference between the two, nor the impact that either one has on a buyer and seller. Below we have tried to show you the difference between the two processes.
Please see our links below for our free listing of Foreclosed and Short Sale properties available in the Fort Lauderdale real estate market. These properties are active listings from our Fort Lauderdale MLS system, and Eric Miller and Associates can represent you in the purchase of any on these properties.
Fort Lauderdale Foreclosures
Foreclosures - A legal process in which a lender takes title or forces the sale of a property as a result of the borrower's failure to comply with the terms and conditions of the mortgage. Once the lender owns the property, they place it on the market for sale. When an offer is placed, the bank will accept, deny or counter-offer. The bank will usually respond quickly. Once price and terms are agreed upon and a contract is fully executed, closings will usually be within 30-45 days.
The borrower will have the foreclosure on their credit report for 7 years. This will have a negative impact of approximately 150-200 points on their credit report. This will show on your credit report and make it difficult for future finances whether it be a home, auto or other type of loan.
Fort Lauderdale Short Sales
Short Sale - When a homeowner sells his home for less than what is owed on the loan. In which the lender would have to approve the sale and take the loss. This process, due to bank approval may take 2 months or longer just to get an approval or denial of a purchase and sale contract. Buyers and sellers need to understand that this process can be very lengthy. If the offer is approved, then the contract will be executed and the closing process can continue. In this process the homeowner will escape the foreclosure process as the lender can not report it to the credit bureaus as a foreclosure.