As of today, June 18, 2012, the Desert MLS lists 11 Foreclosures and 21 Short Sales in Rancho Mirage. How does a foreclosure differ from a short sale?
A foreclosure is "a situation in which a homeowner is unable to make principal and/or interest payments on his or her mortgage, so the lender, be it a bank or building society, can seize and sell the property as stipulated in the terms of the mortgage contract. (Reference: www.investopedia.com)
A short sale is when a lender agrees to accept a mortgage payoff amount less than what is owed in order to facilitate a sale of the property by a financially distressed owner. The lender forgives the remaining balance of the loan.(Reference: Bankrate.com)
You may want to consult a real estate attorney to understand the impact of a foreclosure or short sale on your credit rating.
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