Is a short sale, pre-foreclosure, deed-in-lieu the same as a foreclosure?
No, the terms in the title above all have different definitions when it comes to getting a mortgage loan.
A short-sale, sometimes referred to as a pre-foreclosure sale, is when you have a mortgage on a home and you have decided to sell the home but the proceeds of the sale would not be enough to satisfy the mortgage debt in full. You must have your lenders approval to do this. This is when the lender has settled for less than the balance on the loan. Be careful with this as many lenders will require you to get behind on your mortgage payments before they will accept this type of arrangement.
A deed in lieu of foreclosure takes place when the borrower gives back the property rather than go through the formal foreclosure proceedings. The lender will have to accept this arrangement also. When it comes to getting a mortgage loan, it will impact your credit as a regular foreclosure.
Are you ready to purchase a home but have little to no money set aside for a down payment?
I have plenty of mortgage companies who carry different options for buyers who are looking to purchase a distressed home like a foreclosure.