{"id":1454,"date":"2020-12-28T00:00:00","date_gmt":"2020-12-28T06:00:00","guid":{"rendered":"https:\/\/chrisbuyshomesstlseller7.carrot.com\/?p=1454"},"modified":"2025-02-15T15:26:55","modified_gmt":"2025-02-15T15:26:55","slug":"short-sale-vs-foreclosure-whats-the-difference","status":"publish","type":"post","link":"https:\/\/www.chrisbuyshomeskc.com\/blog\/short-sale-vs-foreclosure-whats-the-difference\/","title":{"rendered":"Short Sale vs Foreclosure \u2013 What\u2019s the Difference in Kansas City?"},"content":{"rendered":"Whether you\u2019re a buyer or a borrower\/seller, a short sale, and foreclosure each present different advantages and difficulties.\n

What Is A Foreclosure In Kansas City, MO?<\/h2>\nIn simple terms… “A foreclosed home is one in which the owner is unable to make his mortgage loan payments and the bank repossessed the home” (source<\/a>). \u00a0If you stop making your house payments… your lender has the right to foreclose on your property so they can attempt to recoup their money that was lent to you.\u00a0<\/span>\n\nA home is typically foreclosed on when a borrower fails to make mortgage payments. The lending institution assumes\u00a0ownership and possession of the property, evicting the borrower. These properties are then sold at auction or more\u00a0traditional means utilizing the service of real estate agents. A foreclosure can damage the credit rating of a borrower,\u00a0and make it very difficult to obtain a mortgage for many years.\n\nDepending on the state that you live in… a foreclosure can work in different ways. Check out the foreclosure process information<\/a> over here at the HUD Government website.\n

What Is A Short Sale?<\/h2>\nIn a short sale, the home is still owned by the borrower.\n\nThe definition of a short sale is… “A\u00a0<\/span>short sale<\/b>\u00a0is a sale of\u00a0<\/span>real estate<\/a>\u00a0in which the proceeds from selling the property will fall short of the balance of debts secured by\u00a0<\/span>liens<\/a>\u00a0against the property, and the property owner cannot afford to repay the liens’ full amounts and where the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt<\/span>” (source: Wikipedia<\/a>)<\/span>\n\nIn some cases, a short sale is an option agreed upon by borrowers and lenders. In a short sale, the home is sold for\u00a0less than the outstanding balance of the mortgage. The unpaid balance (known as the deficiency) may or may not still\u00a0be owed by the borrower.\n\nThis option typically takes some time, as a few different lending institutions may own the\u00a0mortgage. All parties who have a stake in the property must agree to the terms of the sale, and a potential deal could\u00a0fall through if even one lender doesn\u2019t agree.\n

Short Sale vs Foreclosure – Your Options<\/h2>\nWhile both options can have ramifications, a short sale often has less of an impact on the borrower’s creditworthiness.\u00a0A foreclosure could impact a borrower\u2019s credit score by 300 or more points<\/em><\/strong>, where a short sale may only dent the credit\u00a0score by 100 points.\n\nBorrowers who are foreclosed on are often ineligible to purchase another home for 5-7 years with a traditional mortgage,\u00a0where under certain circumstances, a short sale borrower can purchase immediately.\n\nAs many Americans struggle with an economy that has yet to completely recover from the 2008 crash, folks are having\u00a0a hard time making monthly mortgage payments. Choosing between being foreclosed and initiating a short sale (or a 3rd option… \u00a0selling your Kansas City house fast<\/a><\/strong>\u00a0 )is an\u00a0easy choice for a borrower having troubles paying their mortgage on time.\n\nSometimes, lenders are willing to work with\u00a0borrowers to complete a short sale, to avoid the fees and time-consuming process of conducting a foreclosure.\n\nOur suggestion is always this.\n
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  1. Talk with your lender and discuss ways that they can work with you on your loan.<\/strong> We offer this service where we can help guide you in the right direction if you run into issues with your lender… just reach out to us on our Contact page<\/a> and we’ll discuss your situation.<\/li>\n \t
  2. Attempt a short sale or other programs your lender may have<\/strong> that forgives part of your loan, creates a new \/ more affordable monthly payment so you can get back on your feet, etc.<\/li>\n \t
  3. If the bank isn’t willing to work with you very much<\/strong>… your best option may be to sell your house. Work with a local real estate house buyer service like Chris Buys Homes in Kansas City to sell your house fast for an all-cash offer<\/a><\/strong>. If you’re interested we can look at your situation and make you a fair offer on your house within 24 hours. Just fill out the form on our website over here >><\/a><\/li>\n \t
  4. Foreclosure<\/strong>. Last resort is to let the house fall into foreclosure. This is the worst possible scenario. It’ll harm your credit and you could still be left with money owed to the bank even after the foreclosure is finished.<\/li>\n<\/ol>\nBy knowing your options, you may be able to dodge a significant impact on your credit score, allowing you to purchase a\u00a0new home when your situation improves. A foreclosure on your credit report makes that possibility extremely difficult\u00a0for 5-7 years, so if you have the opportunity, a short sale can be the better option.\n\nHave a pending foreclosure? \u00a0We’d like to make you a fair all-cash offer on your house.<\/strong>\n

    Give us a call anytime at (816) 720-7760 or\nfill out the form\u00a0on this website today! >><\/a><\/strong><\/h3>","protected":false},"excerpt":{"rendered":"

    Whether you\u2019re a buyer or a borrower\/seller, a short sale, and foreclosure each present different advantages and difficulties. What Is A Foreclosure In Kansas City, MO? In simple terms… “A foreclosed home is one in which the owner is unable to make his mortgage loan payments and the bank repossessed the home” (source). \u00a0If you […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[148],"tags":[50,81,95,105,107],"class_list":["post-1454","post","type-post","status-publish","format-standard","hentry","category-reason-to-sell","tag-foreclosure","tag-local-house-buyers","tag-sell-my-house-fast","tag-short-sale","tag-short-sale-vs-foreclosure"],"_links":{"self":[{"href":"https:\/\/www.chrisbuyshomeskc.com\/wp-json\/wp\/v2\/posts\/1454","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.chrisbuyshomeskc.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.chrisbuyshomeskc.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.chrisbuyshomeskc.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.chrisbuyshomeskc.com\/wp-json\/wp\/v2\/comments?post=1454"}],"version-history":[{"count":1,"href":"https:\/\/www.chrisbuyshomeskc.com\/wp-json\/wp\/v2\/posts\/1454\/revisions"}],"predecessor-version":[{"id":18931,"href":"https:\/\/www.chrisbuyshomeskc.com\/wp-json\/wp\/v2\/posts\/1454\/revisions\/18931"}],"wp:attachment":[{"href":"https:\/\/www.chrisbuyshomeskc.com\/wp-json\/wp\/v2\/media?parent=1454"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.chrisbuyshomeskc.com\/wp-json\/wp\/v2\/categories?post=1454"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.chrisbuyshomeskc.com\/wp-json\/wp\/v2\/tags?post=1454"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}