Reasons to Shop for Short Sales and Foreclosures When Buying Houston Condos for Sale

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    Jan 07, 2013
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There many reasons why you should shop for short sales and foreclosures when you are buying Houston Condos For Sale. One of the primary reasons is because Condos For Sale in Houston can be quite expensive and short sales and foreclosures are much more affordable. These are properties that are sold by the bank in order to relieve the original homeowner from the debt that they owed on their home. A short sale and foreclosure are vastly different from one another though. Below, you will find differences between them and reasons why you should shop for these types of properties.

#1 - Short sales are considerably cheaper and they can be financed
You do not have to have cash in order to purchase a short sale and these types of properties are considerably cheaper than regular property sales. Essentially, a short sale is when the homeowner does not have enough money to sell their home profitably. They likely owed more money on their loan than they could sell their home for. For this reason, they decide to short sale the property and the bank allows them to list it for a very cheap price, and they will be relieved for any money they owe on top of that sale price. It's a way for them to get out of the loan that they owe on and have it essentially be dismissed by the bank. Short sales are so cheap though, that they are an incredible purchase for any home buyer. If you are looking for condos for sale in Houston, a short sale should be something that you consider.

#2 - Foreclosures are the most cost effective, but they generally cannot be financed
Foreclosures are generally going to be cheaper than short sales. The reason for this is because a foreclosure is when the bank has literally evicted the homeowner from the property. They typically do this when the homeowner has failed to make payments toward their mortgage, so it's time that they remove them from the property and cancel their loan. The homeowner is relieved from any debt that they owe, but their credit rating is going to be impacted substantially. They will have a hard time buying a home again in the future and that is why many people do not want to be foreclosed on. Foreclosures are very affordable, they are even cheaper than short sales. The problem with a foreclosure is that it generally cannot be financed and you have to have cash in order to purchase it.

Short sales and foreclosures are excellent buying opportunities for anyone that is purchasing Houston condos for sale. However, keep in mind that these types of properties can take a considerably lengthier period to close. What this means is, while a regular home sale may close in as little as 30 days, short sales can take as long as six months to come to full closure. This is a very long period of time, it's something that you need to account for with your budget and your schedule. If you're looking to move out quickly, then this probably is not an option for you.

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