Short Sale VS. Foreclosure: Do You Know the Difference?
Homeownership is the ultimate American dream. But every now and then, life throws curveballs that sometimes we just miss. In times like this, those hard falls can take a major toll on our financial health, ultimately putting our home and livelihood at risk. Foreclosures and short sales are both options for homeowners who fall behind on mortgage payments, but it's important to understand the difference between these two processes. So, this week we're sharing with you the difference between the two, and what you should do if you find yourself in need of one of these options. What is a Short Sale? In a short sale, your lender may agree to accept less than the full amount owed on your mortgage loan, allowing you to sell your property for less than the total owed. The difference between the final amount paid and the amount owed is called a deficiency. Short sales are generally allowed only in case of economic or financial hardship. What is a Foreclosure? Foreclosure is a le...