Short Sales vs. Foreclosures

As a home buyer, it is important to know the difference between a short sale and a foreclosure.

During the boom time in real estate the answers were much different than today. At the peak of the market, the definition of a short sale was a property that sold the day it was listed. The term foreclosure was almost a foreign term because sellers were able to sell their homes if they were having trouble making their payments and quite frankly, there were not many.

So what exactly is a "Short Sale"?

A short sale is the process of a seller obtaining an offer on their property and then trying to convince the bank to accept less than what is due.  For example, a seller owes $250,000 on the house, but can only get $200,000. The bank has a lien on the property and this debt must be cleared in order for the house to be sold.

The difference between a short sale and a foreclosure.When considering looking at short sales or foreclosures, you must first understand that a short sale is a much more difficult property to obtain. The two are like apples and oranges when it comes to a buyer's experience.

What Makes a Foreclosure Different Than a Short Sale?

A foreclosure is a property that has already been taken over by the bank. The seller was unable to keep up with payments and simply had to relinquish the property back to the bank. Foreclosures are fairly straight-forward sales because the banks typically do not want to be "home owners"; they want to be "home loaners".

Your Time Is Valuable

When looking at a short sale property, keep in mind that you may not be able to buy it.

Ask yourself this question, "Can I put my plans on hold and wait 4 months (or even a year) for the bank to decide to accept a short sale?"

If the answer is no, then avoid short sales. If you are okay with waiting, then a short sale may prove to be a good choice if the price seems right.

Foreclosures are More Straight Forward

With bank owned homes, you can typically close quickly and the main factor to keep in mind is that many people look for foreclosures, so if you find one you like act quickly, and secondly, they are sold as-is. The sellers generally do not make repairs on the property.

We have included all of the areas short sales and foreclosures. If you need more specific explanation or would like to know what pitfalls to watch out for when pursuing these properties, feel free to let us know.

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2173  Spoleto Ln North Charleston, SC 29406
$83,000 - 2173 Spoleto Ln North Charleston, Sc 29406 @ Otranto Club Villas
MLS#
BR1204906
Class:
Residential
Status:
Active
Beds:
2
Baths:
2 Full / 1 Half
Cozy town home with 2 master suites. The living area boasts laminate wood floors, fire place and eat in kitchen. Nicely painted! Both bedrooms have two full bathrooms with cathedral ceilings. Sky lights can be found in both bathrooms as well. Separate laundry room is out side in utility storage unit. This unit is the end unit which allows for...

1909  English St North Charleston, SC 29405
$34,900 - 1909 English St North Charleston, Sc 29405 @ Chicora Place
MLS#
BR1300705
Class:
Residential
Status:
Active
Beds:
3
Baths:
1 Full / N/A
BANK OWNED! GREAT INVESTMENT OPPORTUNITY. This is a nice 3 bedroom, 1 bath house. Has wheelchair access. Minutes to everywhere! *****ATTENTION INVESTORS!!*** There are 19 total properties for sale that can be sold individually or as a package deal. Call or email for a list.

1319  Addykay Place North Charleston, SC 29406
$142,000 - 1319 Addykay Place North Charleston, Sc 29406 @ Runnymeade Farm
MLS#
BR1225038
Class:
Residential
Status:
Active
Beds:
3
Baths:
2 Full / N/A
FORECLOSURE!! BANK OWNED!! Adorable low country style home! Open floor plan with beautiful hardwood floors throughout the family room, dining area, kitchen, hall, and powder room. Neutral ceramic tile in the laundry room and master bath. The family room features a gas fireplace and ceiling fan. 9 FT smooth ceilings and crown trim throughout. ...

1318  Addykay Place North Charleston, SC 29406
$130,000 - 1318 Addykay Place North Charleston, Sc 29406 @ Runnymeade Farm
MLS#
BR1225039
Class:
Residential
Status:
Active
Beds:
3
Baths:
2 Full / N/A
FORECLOSURE!! BANK OWNED!! Smooth ceilings throughout. The kitchen has stainless appliances, refrigerator, built-in microwave, stove, and dishwasher. Hardwood floors, ceramic tile, fireplace, crown molding, and rear deck. Runnymeade neighborhood is 1 mile from Interstate 526 convenient to everything including the Weapon Station, Boeing, hospi...

2159  Spoleto Ln E North Charleston, SC 29418
$52,800 - 2159 Spoleto Ln E North Charleston, Sc 29418 @ Otranto Club Villas Iii
MLS#
BR1307132
Class:
Residential
Status:
Active
Beds:
2
Baths:
2 Full / N/A
This townhome is located centrally to shopping, restaurants, and medical facilities is two bedrooms and two full baths. Fenced in patio for privacy. Otranto Club Villas III is a complex of 60 condominiums. APPOINTMENT REQUIRED THROUGH LISTING OFFICE - 48 HOUR NOTICE - TENANTS RIGHTS.

5725  Dewsbury Ln North Charleston, SC 29418
$50,000 - 5725 Dewsbury Ln North Charleston, Sc 29418 @ Collins Park Villas
MLS#
BR1202169
Class:
Residential
Status:
Active
Beds:
2
Baths:
2 Full / 1 Half
VALUE, VALUE, VALUE. Check out the competition and see why this home offers such great value. As you access the property the functionality of the floor plan is most compelling. The generous family room opens into a spacious dining room which leads into the kitchen area served by a breakfast bar. The kitchen offers plenty of counter space and ...

2447  Woodstock Ave North Charleston, SC 29406
$50,000 - 2447 Woodstock Ave North Charleston, Sc 29406 @ Northwoods Villas
MLS#
BR1303682
Class:
Residential
Status:
Active
Beds:
2
Baths:
1 Full / 1 Half
LOCATION, LOCATION, LOCATION This is a great opportunity for a home buyer or investor. Check out the competition and see why this home offers such great value. As you enter the front foyer this opens into the family room with wet bar and feature fireplace. This leads into the generously appointed dining room overlooking the spacious kitchen. ...

2740  Constitution Ave North Charleston, SC 249405
$48,800 - 2740 Constitution Ave North Charleston, Sc 249405 @ Waylyn
MLS#
BR1010379
Class:
Residential
Status:
Active
Beds:
3
Baths:
1 Full / N/A
Lender owned property with current rent of $650/mo. with stable tenant. That is a 16% gross return at this list price! Hardwood floors throughout and under carpet in bedrooms. Central HVAC, storm windows and nicely insulated attic makes this a cozy home. Come check it out. Monthly rental income $650.00

5460  Pennsylvania Ave North Charleston, SC 29406
$88,000 - 5460 Pennsylvania Ave North Charleston, Sc 29406 @ Charleston Farms
MLS#
BR1301413
Class:
Residential
Status:
Active
Beds:
3
Baths:
3 Full / N/A
Plenty of space in this home...separate living room, dining room and den. Bright and sunny den has tile flooring and a fun bar area overlooking the grilling deck. Two bedrooms on the first floor with two separate baths and the third bedroom and bath is upstairs which has its own entrance from the outside and a private porch. Not only is there...

7998  Malden Ave North Charleston, SC 29420
$99,000 - 7998 Malden Ave North Charleston, Sc 29420 @ Colony North
MLS#
BR1310305
Class:
Residential
Status:
Active
Beds:
3
Baths:
2 Full / N/A
Amazing opportunity to own a home in the middle of everything and at a great price. This is a short sale with lots of sweat equity potential. The home is situated on a short cul-de-sac street and on more than a quarter acre. The home features a full front porch and great front and backyard. Once inside, you are welcomed by a great foyer which...

Broker Reciprocity The data relating to real estate for sale on this web site comes in part from the Broker ReciprocitySM Program of the Charleston Trident Multiple Listing Service. Real estate listings held by brokerage firms other than Carolina One Real Estate are marked with the Broker ReciprocitySM logo or the Broker ReciprocitySM thumbnail logo (a little black house) and detailed information about them includes the name of the listing brokers.

The broker providing these data believes them to be correct, but advises interested parties to confirm them before relying on them in a purchase decision.

Copyright 2013 Charleston Trident Multiple Listing Service, Inc. All rights reserved.

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