Oviedo foreclosures and short sales do not make up the majority of the residential sales in today’s market; however, in an economic downturn, we see that number increase and are part of the options available to buyers. When buyers are searching distressed Oviedo properties, they learn fast that while these homes are priced below regular homes, market value, for some, the time and effort to make it worthwhile may not be worth the price, while others may see it as a great investment.
A short sale is a negotiated settlement between the lender and the borrower, and the lender cannot do anything to violate such an agreement. This occurs when a borrower (owner of home) is no longer able to maintain the payments on the mortgage. They stop making payments and their mortgage goes into default. The bank, then, tries to sell the property to recoup some of the losses. They usually lose a large sum of their investment in the property leaving a seller with a deficiency.
A foreclosure occurs when the short sale has been unsuccessful and the bank has repossessed the property. At that time, the bank lists the property for sale without the previous homeowners involvement. The cost of these properties is usually affordable due to the condition of the home. Many repairs are usually needed to bring the home to livable condition, but these properties can make great investment homes or even primary residences.