Short Sale vs. Foreclosure

What is the difference between a short sale and a foreclosure? A "short sale" is where the owner will be selling the property short of what is owed to the lender. The lender must agree to accept less than what is owed on the mortgage. A short sale typically prevents a foreclosure. A foreclosure is a legal proceeding where the lender takes back the property that was pledge as security for the mortgage. The lender is then the actual owner of the property. The bank will then typically try to re-sell the property to recoup their losses from the loan default. These properties are often referred to as "REO's" (Real Estate Owned) properties.

Many Nothnagle agents have formal training to assist buyers looking to purchase a home through short sale or REO properties. Or, if you are a homeowner looking to sell in order to prevent a foreclosure a Nothnagle agent can assist you through the process.