Buying a home is one of the major investments that a person makes in life and at the time he purchases a home, it is not in his mind that he may face financial issues in the future and can lose his house. Yes, it happens. When a homeowner fails to pay the mortgage installment for three or more months, then his lender can proceed with the foreclosure to recover as much of the due loan amount is possible.
Foreclosure is considered as one of the worst deals of the real estate that homeowners are always afraid of facing. But as the circumstances can worsen anytime, it does not mean that the person should not think of getting home ownership again. Though it takes some time, it is not much difficult to get a mortgage again.
A short sale is a process in the which the lender and the borrower (when he defaults on his mortgage) sign the agreement to sell the house before the foreclosure occurs. The short sale is a mean by which the lender obtains the remaining debt owed by the homeowner. The homeowner needs to get the approval from the lender to proceed with the short sale.
Housing recession is not a new concept; you must have heard that house prices fall by a particular percentage. It is not only the house prices that fall in the housing recession but as an impact of that, the stock prices fall, interest rates increase, the rate of unemployment goes higher and much more. On the positive side, the housing recession provides the investors and the house buyers an opportunity for making a purchase.