• Process starts when the owner misses consecutive mortgage payments.
• Bank assumes ownership rights of the property.
• Property can be sold via auction or through the Multiple Listing Service.
• There are two types of foreclosures: Judicial and Non-judicial
• House is sold lower than market value because banks are interested in a quick sale.
• Takes on average 3 to 7 business days to receive a response from the bank after an offer has been submitted.

Short Sales

• Process starts when the owner demonstrates hardship to the lender or when the owner misses consecutive mortgage payments.
• Bank agrees to sell property for less than the seller’s mortgage because there is not enough equity to pay off the mortgage.
• Money from sale goes directly to bank.
• Property is sold lower than market value.
• Typically takes around three to six months to receive a response from the bank after an offer has been submitted.
• On average, credit ratings lower the same amount of points whether from a foreclosure or from a short sale (i.e., a 30 to 300-point deduction).

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