Bank Owned / REO Homes
Bank Owned / REO Homes a much easier way to purchase a home that’s been through the foreclosure process and retained by the bank. REO is an acronym for Real Estate Owned. Banks don’t like to own Real Estate and want to liquidate in a timely fashion, providing an excellent opportunity to buy properties below market value. This transaction in most cases allows the buyer the right to inspect before making a full commitment and the ability to purchase Title Insurance.
Short Sale homes are being sold by a seller tying to avoid foreclosure. Whatever a seller accepts as a sale price is subject to Bank Approval. This can be a complex transaction because unlike the foreclosure process that’s spelled out in black and white, this process is new to the market a product of the Real Estate meltdown. Statistics show only one third of short sale contracts make it to closing. The time from submitting an offer to closing can range from 6 weeks to 9 months. There are some very specific questions to ask when pursuing a Short Sale.
Foreclosure Homes are sold at auction, a sales process explained in detail within a mortgage provided by a lender. In the mortgage it outlines how a lender can legally take back property a borrower has defaulted on using the foreclosure process. Buyers should understand what can potentially be attached with title / ownership. Buyers of auction foreclosures typically buy without title insurance or having inspected the subject property. This last statement alone explains the risk involved with this purchase process