It goes without saying that you cannot live without one thing: the roof over your head. Most people want their own house, especially if they have a family to take care of. Of course, you’ll need to do a lot of planning before you buy a home, as this decision can have a huge impact on you and your family. Let’s know more about it.

when buying a house

If you want to buy your own home, there are many things to consider. You may have to face some serious problems. For example, if you lose your job, it will be more difficult for you to keep your word. And in the worst case, you may have to deal with a short sale or foreclosure. This can have a negative impact on your routine life. So you may want to understand how it works.

Short Sale and Foreclosure

If you are not familiar with the two terms mentioned above, you should first understand the difference between the short sale and the foreclosure process. According to most people, foreclosure is a situation where you are forced to give your house back to the lending authority, which is a bank most of the time. Once the house is delivered from bank to bank, you no longer have to pay the debt.

a misconception

Apart from this, some people have the misconception that the short sale is not a real transaction, which is not true. No matter what happens, you must keep your word and be ready to meet the deadline.

Mortgage’s trial

In case of foreclosure, the lender has to auction your house to sell it to the person who makes the highest offer. The lender will list the property for sale within a certain period of time. However, the law requires the homeowner to appear in court. The owner of the house is the same person who borrowed from the bank. In court, the owner must present his point of view on the mortgage. If you, the landlord, have strong evidence, you must present it. If you don’t have strong evidence, the judge can issue a verdict returning your home to the lender.

On the other hand, in the event of a short sale, you can sell your property. You will find a buyer yourself and you will not have to appear in court. And it will be an agreement between you and the lender. However, in some special cases, you will need the professional advice of a good real estate broker. But before closing the deal, you’ll need to make sure the lender agrees to the procedure.

The two processes are different in some respects. It is important that you complete the short sale as soon as possible or the lender may lose interest in the property and not purchase it. But in case of foreclosure, you can’t do much as you will have to comply with the court decision.

To summarize, foreclosure is not easy. Therefore, it is important that you get help from a professional so that the process is completed in the best possible way.