I am often asked what is the difference between a short sale and a foreclosure. 

In a short sale, the owner still owns the property, but if they tried to sell they would have to bring money to the table because the property is currently worth less than the mortgage value.  This is money that the owner does not have so they are negotiating with the bank in order to get out of their home before going into foreclosure. 

One of the major problems with short sales is the fact that they take a lot of time.  This does not matter often when a client is looking for a condo as a vacation home because it does not matter how long it takes to get it sold.  On the other hand, if someone is moving to the island and needs to get in a property we normally don’t look at short sales.

In a foreclosure, the bank already owns the property and there is normally a faster turn around time. 

A lot of people feel that there are some excellent values available in short sales, but you must be willing to wait. 

Click here to check out our Hilton Head Island short sale and foreclosure properties.