There is no need to say that you can’t live without one thing: the roof over your head. The majority of people want their own home, especially if they have a family to take care of. Of course, you will need to do a lot of planning before buying a house as this decision can have a great impact on you and your family. Let’s know more about it.

When Buying a House

If you want to buy your own house, you need to consider a lot of things. You may have to face some serious problems. For example, if you lose your job, you will find it harder to keep your word. And in the worse scenario, you may have to deal with a short sale or foreclosure. This may have a bad impact on your routine life. Therefore, 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 know the difference between the short sale and the foreclosure process first. According to most people, foreclosure is a situation where you are forced to give your home back to the lending authority, which is a bank most of time. Once the house is given bank to the bank, you no longer have to pay back the debt.

A Misconception

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

Foreclosure

In case of a foreclosure, the lender has to auction your house in order to sell it to the person who places the highest bid. The lender will advertise the property to sell it in a certain period of time. However, the law requires the home owner to show up in the court. The home owner is the same person who borrowed from the bank. In the court, the homeowner will have to present his point of view about the mortgage. If you, the homeowner, have strong evidence, you should present it. If you don’t have strong evidence, the judge may issue a verdict giving your house back to the lender.

On the other hand, in case of a short sale, you can sell your property. You will find a buyer yourself and you won’t be required to show up in the 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 the closing of the deal, you will need to make sure that the lender expresses his agreement to the proceedings.

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

Long story short, foreclosure is not easy. Therefore, it’s important that you get help from a professional so that the process is completed as smoothly as possible.

Source by Satvik Mittal