Foreclosure and Short Sales are both options for homeowners who fall behind on mortgage payments, it is also IMPORTANT to understand the difference between the two.
A short sale happens when a homeowner owes more on the mortgage balance than the market value or sale price of the property at the point the owner wants to sell. For a short sale, the homeowner is essentially asking the mortgage lender (typically a bank) to accept a lesser amount than the total mortgage owed.
For example, if the homeowner sells the house for $250,000, but the remaining mortgage loan balance is $300,000, the seller is essentially $50,000 "short" on paying the lender back. That's a short sale.
Foreclosure is a legal process that happens when a homeowner is unable to make mortgage loan payments for a significant period of time.
After three to six months of missed mortgage payments, a lender will issue a Notice of Default with the County Recorder'sOffice. This notice is to let the borrower know he is at risk of foreclosure—and when they foreclose, the current owner will be evicted.
After receiving the Notice of Default, borrowers can try to settle their loan debt with their lender either through a short sale or by paying the mortgage balance they owe. This period is called pre-foreclosure and can last anywhere from 30 to 120 days after receiving the Notice of Default.
Foreclosures and Short Sales are getting harder and harder to find, but we’re here to help you in your search. If you are in the market for a short sale, foreclosed or REO property, please contact us to get the latest list. Though we display the most recent foreclosures listed in our MLS & reg, not all properties make it online. They sell too quickly!
To be in the know when it comes to foreclosures and short sales, you need a licensed real estate agent working for you on the inside. We’d love to help you keep track of the latest opportunities in Eugene/Springfield area. If you want to view properties today, please don’t wait for an email reply, contact us at 541-510-6674 for a fastest response.