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Foreclosure vs short sale: what is the difference for buyers?

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Max_Builder
Joined:
06.08.2022
Posts: 245
Topic Starter
11.01.2025 22:09
I've been looking at some listings lately and noticed a few properties marked as either foreclosures or short sales. I'm a first-time homebuyer and honestly, I'm a bit confused about the risks and benefits associated with each. Are there major differences in how long the closing process takes or the condition of the homes typically? I'm trying to decide if it's worth the potential headache or if I should just stick to traditional listings. Any advice from people who have navigated this would be greatly appreciated.
19 replies in this topic
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curious_k
Joined:
03.11.2019
Posts: 1510
13.01.2025 07:54
Short sales are usually a nightmare for first-time buyers. The bank has to approve the offer, which can take months, and there's no guarantee they will accept it even after you wait.
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cris_r
Joined:
29.01.2022
Posts: 2413
14.02.2025 05:00
In reply to a previous post
I second what the first reply said. I tried a short sale three years ago and the seller's lender dragged it out for six months before denying the offer. Total waste of time.
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Stacy_B
Joined:
10.05.2020
Posts: 2039
15.02.2025 20:11
Foreclosures are generally sold 'as-is,' which means you get whatever condition the house is in. Sometimes that's fine, but be prepared for missing appliances or plumbing issues.
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Profit_Maker
Joined:
28.08.2020
Posts: 2283
14.03.2025 13:50
In reply to a previous post
Exactly. With foreclosures, the bank doesn't care about repairs. You need to have a solid inspection done, and don't expect them to fix anything based on the report.
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Fabi_W
Joined:
18.12.2021
Posts: 1029
15.03.2025 02:09
In reply to a previous post
If you are a first-time buyer, honestly, just stick to traditional listings. You have enough stress without dealing with bank bureaucracy.
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IdkButIWrite
Joined:
30.11.2023
Posts: 149
06.05.2025 08:06
I bought a foreclosure last year. It was a fixer-upper, but I got a great price. Just make sure you have extra cash set aside for immediate repairs.
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Leon_M
Joined:
05.07.2022
Posts: 2468
14.05.2025 09:08
In reply to a previous post
How much extra cash are we talking about? I'm worried about hidden costs.
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Fari_P
Joined:
13.07.2022
Posts: 1151
31.05.2025 01:04
In reply to a previous post
Keep at least 10-15% of the purchase price as a 'surprise' fund. Trust me, you'll find something the previous owner broke or neglected.
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deleted_user
Joined:
09.04.2025
Posts: 775
04.06.2025 11:56
Are short sales ever worth it if you aren't in a hurry to move in?
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Iggy_R
Joined:
10.04.2022
Posts: 791
06.06.2025 01:40
In reply to a previous post
Only if the price is significantly below market value. Otherwise, the headache isn't worth the discount.
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SomeoneSomewhere
Joined:
14.10.2023
Posts: 793
09.06.2025 19:41
The main difference is who you are negotiating with. Short sale = homeowner + their bank. Foreclosure = just the bank.
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uncle_joe
Joined:
17.07.2023
Posts: 20
07.08.2025 19:07
Foreclosures often have a bidding war if they are priced well. Be ready to act fast.
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Nico_N
Joined:
30.03.2022
Posts: 2266
26.09.2025 13:05
Don't forget that foreclosures might have liens on the title. You absolutely need a good title company to clear that up.
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camilo
Joined:
23.09.2023
Posts: 112
03.10.2025 05:16
In reply to a previous post
That's a great point. I almost bought a place that had $20k in unpaid city fines attached to the property. Glad the title search caught it.
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Igor_Tech
Joined:
26.01.2022
Posts: 708
19.12.2025 19:05
I've navigated both. Short sales are slow and emotional; foreclosures are cold and strictly business.
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jacek_pl
Joined:
28.11.2023
Posts: 948
24.01.2026 16:06
If you find a 'traditional' listing that has been on the market for 90+ days, that's often a better deal than a short sale anyway.
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deleted_user
Joined:
29.12.2025
Posts: 276
18.02.2026 15:13
In reply to a previous post
I agree with the person who said stick to traditional listings. As a first-timer, you don't need the added complexity of bank approvals.
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Nico_N
Joined:
27.07.2021
Posts: 2239
12.03.2026 02:35
Just make sure you have a real estate agent who specializes in distressed properties. They can tell you which ones are actually worth looking at.
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Vic_S
Joined:
11.05.2024
Posts: 882
11.04.2026 08:42
Good luck! Buying your first place is a huge milestone, no matter which path you choose.

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