Buying a house can be a stressful process, but if you are well-informed and prepared for the buying process, you can end up buying the house you have always dreamed of. One of the most popular trends in the past several years is buying homes overseas, especially in the US. It’s well known that many Australians are attracted by the US real estate market. The interest rates are low, and many people in Australia take advantage of the stable and strong AU dollar to make investments on US soil. However, one thing that bothers the Australian investors is whether to buy foreclosure homes USA or to go for a short sale? What is the difference? Both options have pros and cons, and it depends mostly on the budget and time left to deal with the whole buying process. Most real estate agents recommend buying foreclosure homes in USA rather than deal with all the hassles associated with the short sale.
There is no fine line between short sale and foreclosure homes. We already mentioned that both options have their own advantages and disadvantages, but if you put both options on a counter, then buying foreclosure homes USA would win the bottle.
Foreclosure Homes – Now, what makes foreclosure homes USA a better choice than short sale? First and foremost, you don’t have to deal with the bank and the homeowner. Instead of doing that, your real estate agent can complete the buying process by working directly with the bank. This way, the whole buying process will be completed much faster and without any major administrative problems. The bank will sell the house for the money they are owned. They don’t look for profit. The foreclosure homes USA are usually sold for lower prices. And, that’s exactly what you want right? Banks are eager to sell the property and close the whole foreclosure process. That eases your job too, since you don’t have to travel several times over the ocean to get the job done.
Short Sale – The short sale on the other hand, can be a bit of a trouble and time consuming as well. Instead of dealing with one party, you will have to deal with two. The good thing about short sales is that you can pay lower price for the house. Let’s say that a house is worth 500,000 and a homeowner has paid only 50% of the mortgage. If for some reasons the homeowner doesn’t pay the rest of the mortgage, then you will have a chance to buy the house for 250,000, which is half of the real price. But, you will have to wait for the bank to approve this sale. You might have to wait for months until you receive a response. With foreclosure USA homes you don’t have that problem, you will negotiate directly with the bank and pay no additional fees.