Let’s talk about a couple of terms that everybody is used to hearing, but may not know what they actually entail.
The first phrase that’s heard a lot in real estate is pre-foreclosure. People often see that a home is in pre-foreclosure on a website and think it’s a great opportunity to get a deal. However, it’s very premature to think that.
There are certainly opportunities where you can benefit from that situation, but as a buyer, you’ll need to be very patient. In a pre-foreclosure, the actual foreclosure process hasn’t even started yet; it’s just a notice. So if you are interested in that type of opportunity, know that patience is critical because it is a long process.
You may have heard of a short sale, but aren’t sure what is involved in that situation. A short sale occurs when a lender is willing to allow a homeowner to sell their home for less than what they currently owe on the property. This can be a very cumbersome process, as it is subject to a lot of bank approvals. It usually takes much longer than an average sale.
If you have any questions about these processes or real estate in general, you can always contact a broker on our team!