Understanding the Difference between Pre-Foreclosure and Short Sale Process

Understanding the Difference between Pre-Foreclosure and Short Sale Process

Are you a homeowner struggling with making payments on your home? Have you heard many real estate and mortgage terms and just want to know what it all boils down to?

Foreclosures NYC is a term that has many homeowners frightened since the 2008 housing crisis. With job loss, medical bills, and the cost of living rising, many homeowners are faced with this inevitable decision. However, there is actually hope as long as you as a homeowner are not in denial.

There are phases to go through before you get to the foreclosures NYC phase. You can save yourself the heartache of going through it with a short sale or pre-foreclosure sale. Here is the difference between the two.

Pre-Foreclosure NYC

In a pre-foreclosure NYC, this is the stage to recognize you are in financial difficulties. You realize you are not going to be able to make payments on your home, so before you turn more than 90 days delinquent, you put the home on the market for what you owe your lender.

Now your lender may have sent to you a Notice of Default since technically you must be behind. This stage gives you time to work with a knowledgeable foreclosure expert to save your home through a payment arrangement, short sale, or loan modification. However, once you have reduced your home price lower than your loan balance, you are starting the short sale NYC process.

A Short Sale NYC

The short sale NYC is the next phase. At this point, the property is possibly below the market rate and it is below what you owe your lender. You will need permission to close your deal. At this point, you are already in the delinquency and moving towards the foreclosure status.