Below is my perspective on the comparisons of Foreclosures and Short Sales. 

During difficult times is when millionaires are made.  Bucking trends is the key to success.  No matter whether you purchase a foreclosure, a short sale or just a plain good deal, opportunities abound on Hilton Head Island, South Carolina and in Bluffton, SC.

So what is the story with short sales versus foreclosures?

Well the easiest transaction is neither the short sale nor foreclosure.   The easiest transaction is to locate a seller who is really motivated.  One who has priced their property under market and is willing to negotiate.

But if you would like to pursue a foreclosure or short sale how do they differ?

The foreclosure is a corporate or bank owned property.  They have gained ownership of the property and have enlisted the assistance of an asset manager to market the property.  Typically, a foreclosure does not occur until the original owner is months behind on their mortgage, upwards to twelve months.  In many cases the bank is forced to pay for taxes, insurance and other fees such as Association dues during that time.  The bank must keep these expenses to date to protect their investment.  By the time a property goes to foreclosure the bank has expended significant resources and expenses increasing the overall balance due on the property.  The institution then tries to recoup as much as they can through the sale in foreclosure. 

In a short sale the property is still deeded to the mortgagee.  The mortgagee notifies their lending institution that they can no longer pay for the property and wishes to sell it on the open market.  The listing price and subsequent sales price will be less than owed on the mortgage.  The major difference between a foreclosure and a short sale is that the bank has not expended the resources and expenses  and is many cases is willing to accept a lower price for the property than in a foreclosure.  The process for a buyer though is considerably more difficult.  It takes time for the bank to go through the validation process.  Assuming the bank has agreed to short sell the property it can take up to sixty days for the offer to be evaluated by the bank and an agreement to be completed.    

So whatever path you may take there is a tremendous opportunity to own property on Hilton Head at a heavily discounted price.

To give a perceptive on what is presently available for foreclosure and short sales on Hilton Head Island, SC and Bluffton, SC below are the statistics.

Hilton Head Homes and Villas - 27 in Foreclosure, 45 as a Short Sale

Bluffton, SC Homes and Villas – 31 in Foreclosure, 51 as a Short Sale

If I can be of any assistance please contact me.

Frank Moriarty

800.497.5889

843.384.7280 - cell

843.342.7280 - home

http://www.FrankMoriarty.com

Frank@FrankMoriarty.com