THREE TYPES OF HOMES SALES EXPLAINED
This type of sale is the most common. It iswhen an owner, who owes less than his or her home is worth, is selling theirhome. Since the sellers still have equity in their home, this is not a “distressed”home sale. Typically, sellers in standard sales will get back to buyers within24 hours of receiving an offer to purchase their home and they are sometimeswilling to complete or pay for repairs following an inspection.
In a short sale, the owner of the property is trying tosell it at a price that is less than what he or she owes on the mortgage.Before the transaction can close, the seller’s mortgage lender must agree toaccept that amount. This can be difficult since all mortgage lenders haveto agree on this new amount delaying or stopping the transaction. That meansthat negotiations can be time-consuming (taking several months in some cases)and frustrating for a buyer who has little control over the process. Inaddition, since owners do not have the resources to pay for upkeep, these homesmay need repairs.
In a foreclosure, the previous owner of the property haseither given the keys back to the lender or abandoned the home, or the lenderhas taken back the property and forced the former owner to leave. In eithercase, the lender owns the property. Lenders are often eager to find a qualifiedbuyer and unload these properties, so the buyers often pay less than they wouldhave if they had purchased a similar property in the same neighborhood that wasnot in foreclosure. However, foreclosures often require extensive repairs.