Are you looking to buy a home in Greenville and are interested in purchasing a short sale or foreclosure? It can be difficult knowing the difference between the two types of house sales and you'll want to be prepared for either option. Like most buyers, you're probably looking to snag a great deal and have a smooth home buying process. When contemplating a short sale or foreclosure, it's important to consider what your goal is with the purchase. Are you looking to invest and resell or are you buying your next family home? Let's discuss both Greenville, SC foreclosures and short sales.
The Ins & Outs Of A Short Sale
You may be asking yourself what is a short sale? You've probably heard this term and maybe thought it's when a seller needs to sell their home quickly. Unfortunately, this is not usually the case. A short sale occurs when homeowners owe more on their home than it's actually worth. When the home has been sold, the profits from the sale will not meet the balance of the liens on the home and the lien holders agree to release the liens in exchange for less than what they are owed.
Contrary to popular belief, short sales generally take a long time to close. Sellers must be qualified before being able to list their home as a short sale. This type of home selling also usually has less fees associated with the process than a foreclosure. Additionally, these properties are usually better maintained than foreclosures as homeowners have been residing in the house.
Problems arise when lien holders don't get paid because the selling price of the home doesn't pay off the second mortgage. Lenders will block the sale and buyers become frustrated waiting for the sale to close.
Foreclosures – The Good, The Bad & The Ugly
Foreclosures are a great way to buy a home for bottom-dollar and faster than purchasing a short sale. The drawback is that many foreclosed homes have been ransacked by the previous homeowner and the residences may be in terrible condition. This is not the case for every home, however, and some properties can still be found in excellent condition.
If you're looking to buy a foreclosure at a Greenville home auction, be careful. Buyers cannot see the homes before they're purchased and any liens or damages become your responsibility. Or if you're looking to flip the home and resell it, you should try to spend less than 10 percent of the sale price to renovate. Once your time and money is calculated, you'll want to make sure the resale value is profitable.
Greenville foreclosures and short sales can be an extremely beneficial option for buyers that have patience and time. It's one way to buy a home for the best price and it's important to ensure that you're purchasing a property you can afford and resell.