Should I buy a Los Angeles home in a short sale or foreclosure? Should I sell my home as a short sale or allow the bank to foreclose?
These are questions faced by many Los Angeles home buyers and sellers in today’s tough times.
What is a short sale?
A short sale is when a home owner opts to sell his home for less than he owes on the mortgage, rather than let the bank foreclose on him. Technically the hit on his credit and future home buying power is supposed to be less with a short sale.
If you are thinking of selling your Los Angeles home as a short sale you may be advised to stop making your mortgage payments, and you will certainly have to demonstrate financial hardship. The process can be a long one. You will have to make your home available to buyers like any normal sale, and there is no guarantee the bank will accept any offers presented to them.
If you are thinking of buying a Los Angeles short sale be prepared for a long haul. You can put your heart and soul into the purchase process and end up with nothing. Even after a bank acceptance of your offer, there is no guarantee the sale will close. You are also dealing with sellers who are in an emotional frame of mind having to let go of a home they probably love. One advantage of the short sale is that the home is most probably going to be better maintained than a foreclosure
A Los Angeles short sale is not for the thin-skinned.
Buying a Los Angeles foreclosure
Buying a foreclosure is an easier purchase, as you are dealing directly with the bank. However, know that you are probably going to find homes in less desirable condition than those that were bought through a short sale. Owners of homes that have gone into foreclosure are more likely to trash those homes, through frustration, and your “steal” could end up to be a money pit.
Sometimes it is worth considering both options and your Los Angeles Realtor® will advise you on the best course of action. If they say “run”, you might want to listen to them.
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