The Difference Between A Short Sale & A Foreclosure

As unfortunate as it can be when homeowners fall behind on mortgage payments and must face the possibility of losing their homes, short sales and foreclosures provide them options for moving on financially. The terms are often used interchangeably, but they’re actually quite different, with varying timelines and financial impact on the homeowner. Here’s a brief overview.

A short sale comes into play when a homeowner needs to sell their home but the home is worth less than the remaining balance that they owe. The lender can allow the homeowner to sell the home for less than the amount owed, freeing the homeowner from the financial predicament.

On the buyer side, short sales typically take three to four months to complete and many of the closing and repair costs are shifted from the seller to the lender.

On the other hand, a foreclosure occurs when a homeowner can no longer make payments on their home so the bank begins the process of repossessing it. A foreclosure usually moves much faster than a short sale and is more financially damaging to the homeowner.

After foreclosure, the bank can sell the home in a foreclosure auction. For buyers, foreclosures are riskier than short sales, because homes are often bought sight unseen, with no inspection or warranty.

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The Difference Between A Short Sale & A Foreclosure

How I Help Home Buyers Alleviate Stress

Purchasing a home can be a stressful experience, whether you’re a first-time buyer or you’ve been through the process before. But that’s one of the reasons that working with a real estate professional like myself is so worthwhile. With my guidance, buying a home will be enjoyable, rather than stressful. Here are some of the more unique circumstances where as your buyer's agent can make your life much easier.

Out-of-town buyers: If you’re looking for vacation homes or moving to a job in a new city, there’s a good chance that viewing homes will be difficult—you could be a long drive or even a plane ride away. With today’s video messaging apps like Skype or Facetime, you can view properties virtually. It’s not the same as walking through in person, but it will at least give you an idea about whether a property is worth pursuing further.

When life is just too crazy: If you’re just getting too busy with everything else going on in your life, I usually tell my clients to take a few weeks off from your home search to recharge, or only focus on properties that exactly fit their wants list.

Inspection issues: You’re dreaming about move-in day, and then some unforeseen issues turn up during inspection. As your agent, I will help you by negotiating a lower offer—to cover costs of repairs—or by getting the seller to fix the problem.  

When buying or selling a home in the Denver metro area, contact Delilah,

 and let me put my knowledge, experience, expertise, and professionalism to work for you. 

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How I Help Home Buyers Alleviate Stress

5 Money Saving Green Upgrades

Going green is great for the environment, but that’s not the only benefit. When you make green upgrades in your home, it can also lead to some major savings.

 1. Solar panels: The upfront cost is big, but the long-term savings are huge. Solar panels will cost several thousand dollars to install, but ongoing maintenance costs are very low, and a typical system could save you hundreds of dollars per year. You can even sell your surplus electricity.

 2. Wood furnace: Wood-burning furnaces are relatively inexpensive, and though the yearly savings aren’t as dramatic (about 10% on heating bills), it adds up over the long run.

 3. Insulation: There’s a good chance your insulation isn’t very efficient, especially in older homes. Look into installing floor, cavity, wall, and loft insulation to reduce your heating bills.

 4. Rain barrels: Rain barrels are extremely inexpensive, and provide gallons of free water to use when you wash your car or water your garden.

 5. Geothermal system: OK, so the price tag is scary at first. A geothermal system uses the earth’s temperature to heat and cool your home, but can cost $30,000 to install. But tax credits allow you to get a lot of that money back, and the energy savings average about $1,900 per year. If you plan to be in your home for a decade or two, it’s a great investment.

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5 Money Saving Green Upgrades