What is the difference between short sale, pre-foreclosure and foreclosure - Realtor.com

From Ask a Realtor - Realtor.com - http://www.realtor.com/news/ask-a-realtor/what-is-the-difference-between-short-sale-pre-foreclosure-and-foreclosure-2/

Short sale – the owner is selling and does not have funds/equity to close the transaction and needs short sale approval from lender(s). Typically owes more than market value of property and may or may not be in pre-foreclosure. If the lender(s) approve they will take it short as far as the mortgage owed.

Pre-foreclosure - Owner is greater than 90 days late on payments and lender has started foreclosure process with a notice of trustee sale. These properties are generally not readily for sale and are what you see on Realitytrac.

Auction - the borrower did not correct the arrears of their default and the trustee is auctioning the property to the highest bidder which may be the lender.

Foreclosure - These are bank owned REO properties, the foreclosure process has completed, all notices were done, the courthouse auction took place no one purchased it and the property was return to lender.

Click http://www.realtor.com/news/ask-a-realtor/what-is-the-difference-between-short-sale-pre-foreclosure-and-foreclosure-2/ for the complete article.

Sharon Gill

Sharon Gill

BROKER ASSOCIATE / SALESPERSON
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