Types of Foreclosures
Talking about foreclosure can cover an entire book by itself. Although , there are three types of foreclosures you should know when purchasing this type of Fairfax VA homes for sale.
The first category is called a short sale. Fairfax short sales occur when the property seller is still residing in the home and can’t afford to pay their monthly mortgage fee. However, since the market’s down, they will only be able to put it up for sale for less than their whole outstanding mortgage sum. In real estate, this is called as “upside down in your house.”
For a fixed period of time, the lender will let the homeowner try and sell their home while they can’t pay for their mortgage expenses. Subsequently , on the day the final escrow closes, the lender will accept the loss on the difference between the decreased sales price and what’s left of the remaining higher balance of the owner’s mortgage.
For instance, a homeowner’s lender could get a Fairfax short sale payoff of only $310,000 on a loan balance of $350,000. The biggest issue homeowners face here is making the lender agree to recognize that much of a loss and come to a final agreement. This drawn-out subject matter needs some very shrewd dealing itself. What ends up commonly happening is about 50% of Fairfax VA homes listed as short sales going instead to foreclosure because the bank won’t put up with losing that much.
Many banks will thrive to sell the property off on their own and will only recognize the loss after they find out for themselves. To obtain the best outcome with Fairfax short sales and Northern Virginia foreclosures, it’s highly suggested to get an agent who specializes in it.
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Thierry is a Real Estate Agent at RE/MAX Premier, and Host of Talk Radio’s, “Inside Real Estate”
Get Your Free Weekly List Of Northern VA Foreclosures For Sale and save Tens of Thousands on your Home Purchase
Phone: (703) 222-6714 .
Thierry@ThierryRoche.com
Copyright 2010 Inside Real Estate, LLC. All Rights Reserved.
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Filed under Investing, Leasing Renting. Tags: Fairfax VA homes for sale
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