Home sales usually fall into one of three main categories: traditional sales, short sales, and foreclosures. For buyers, each has pros and cons, though generally speaking the cheaper properties are short sales and foreclosures. But if you’re a buyer, you need to keep in mind that these properties are usually cheaper for a good reason. The best route for you depends on your financial situation and your goals, especially whether you’re buying the property live in or as an investment. Let’s take a look, then, at traditional sales vs. short sales and foreclosures in Washington DC.
Traditional Sales
This is what typically comes to mind when people think about selling a home—a straightforward, traditional sale. In this scenario, a property owner lists their home on the open market, finds a willing buyer, and the two parties negotiate a mutually agreed-upon price. The transaction is voluntary, and while the seller may have personal reasons for moving—downsizing, relocating for work, or simply seeking a change—they are not under external financial pressure to sell.
Unlike short sales or foreclosures in Washington DC, where lenders are heavily involved due to missed payments or an underwater mortgage, traditional sales give homeowners more control over the process. There’s room for strategy, such as choosing the best time to list, staging the home, and negotiating terms like closing costs and possession dates. Sellers are also more likely to walk away with equity in their pocket, which can be used toward their next home or to meet other financial goals.
In contrast, distressed sales—like short sales and foreclosures—often come with tight deadlines, credit implications, and a sense of urgency that can limit a homeowner’s options. That’s why understanding the differences between these paths is so important when you’re facing financial difficulties in Washington DC.
If you’re unsure where you stand or what your best move is, talking to professionals like those at Pro Homebuyer Solutions can help you weigh your options carefully. Whether you’re in a position to pursue a traditional sale or need a more flexible solution like a direct cash offer, we’re here to walk with you through the process—judgment-free and focused on your future.
Short Sales
With short sales, the money from the sale isn’t enough to fully cover the amount owed on the property, hence the term “short.” Because the seller has to get the lender to approve the sale price, there is nothing short about the amount of time a short sale takes. What a short sale does is allow the seller to avoid foreclosure. For buyers who are willing to wait after making an offer, short sales can yield some good deals.
Foreclosures
When a homeowner falls behind on mortgage payments, the lender may issue a formal notice of default, triggering the foreclosure process. In most cases, this notice gives the homeowner 90 days to bring the loan current or work out a repayment plan. If no resolution is reached during this window, the property is scheduled for auction. At this point, it’s open to bids from individual buyers, investors, or companies—usually with a minimum bid that reflects what’s still owed on the mortgage.
If the auction doesn’t result in a successful third-party sale, the lender typically takes back ownership of the property, turning it into what’s known as “real estate owned” (REO). From there, the lender will usually list it for sale through a real estate agent, aiming to recover as much of the unpaid loan balance as possible.
For bargain-hunting buyers and investors, foreclosures can offer appealing opportunities to purchase properties below market value. However, these deals come with their own share of challenges—title issues, property condition, and bidding competition can all turn a great deal into a risky endeavor. Plus, there’s an emotional layer to the transaction that’s easy to overlook: while buyers see potential, the sellers are often dealing with significant personal loss.
Foreclosures often stem from hardships completely outside the homeowner’s control—things like medical crises, prolonged unemployment, or the financial aftermath of a divorce. These are not careless sellers—they’re people caught in difficult life transitions.
While foreclosure can be deeply painful for homeowners, there are a few silver linings. One is that forgiven mortgage debt may be excluded from taxable income under certain IRS provisions, easing the financial blow. Another is the emotional and logistical relief of no longer being responsible for an overwhelming mortgage. The foreclosure process is lengthy, often taking several months to finalize, and until it’s complete, the property legally remains in the homeowner’s name.
If you’re facing foreclosure in Washington DC, it’s important to know that you’re not without options. At Pro Homebuyer Solutions, we’ve worked with countless homeowners in similar situations and can help you explore alternatives—like a short sale or direct purchase—that can help you move forward with less stress and greater control over the outcome.
Observations About Short Sales and Foreclosures
Short sales in Washington DC typically take a lot longer to close than traditional sales, requiring complex documentation and extended back-and-forth between the seller and lender. If you make an offer on a short sale, it not only has to be accepted by the seller but also has to be submitted to and approved by the lender (who is taking a loss). If your offer isn’t approved, then you’ll have to restart the whole process. As a result, short sales usually take three to six months to complete while foreclosures usually close within 30 to 45days of an offer’s being accepted.
Another important aspect to keep in mind is that short sale and foreclosure properties are often vacant for long periods and frequently in disrepair. In addition, these properties almost always must be purchased as-is. The good news here for buyers is that if you’re willing to invest a little in repairs and put in a little elbow grease, you can get a great deal on these properties.
Traditional sales vs. short sales and foreclosures in Washington DC – which one is right for you? Again, it depends primarily on your purpose in buying the property, what you intend to do with it. It also depends on whether you’re willing to play the waiting game and are prepared to take on a distressed property. In such a situation, it’s best to lean on the expertise of a qualified real estate professional. And we’re prepared to provide the guidance you may need. Call us today at (571) 568-8480!
Interested in Washington DC short sales or foreclosures? We can help! Contact us today for more information! (571) 568-8480
