Foreclosure/Bank Info
Foreclosure / Bank Owned
Do you have the interest in buying a bank owned home or foreclosure but just not sure where to start? Do you mind putting in a little TLC into a house to earn some sweat equity? A foreclosure or bank owned home might be the one for you! Foreclosures can be a great deal for investors and homeowners. There are many financing programs out there that will give you extra fix up money so you don't have to worry about having money for repairs and renovations. The following are a list of terms that may help you know more:
Short Sale
A short sale is a sales transaction in which the sellers mortgage lender agrees to accept a payoff of less than the balance due on the loan. The home is typically being sold to prevent impending foreclosure due to mortgage default. Many times on these listings you will see third party approval required.
Foreclosure Sale Auction
This is a property that a lender is reposing from the owner and is selling at public auction to recover the amount owed on the defaulted mortgage plus any applicable fees and expenses (also called "Trustee Sale").
REO
REO stands for Real Estate owned by a lender or government entity (FHA, VA, etc). You will also hear the term “Bank owned” in reference to such properties. REO's are most often post-foreclosure listings that come on the market after the lender or government agency has purchased them at auction.
Do you have the interest in buying a bank owned home or foreclosure but just not sure where to start? Do you mind putting in a little TLC into a house to earn some sweat equity? A foreclosure or bank owned home might be the one for you! Foreclosures can be a great deal for investors and homeowners. There are many financing programs out there that will give you extra fix up money so you don't have to worry about having money for repairs and renovations. The following are a list of terms that may help you know more:
Short Sale
A short sale is a sales transaction in which the sellers mortgage lender agrees to accept a payoff of less than the balance due on the loan. The home is typically being sold to prevent impending foreclosure due to mortgage default. Many times on these listings you will see third party approval required.
Foreclosure Sale Auction
This is a property that a lender is reposing from the owner and is selling at public auction to recover the amount owed on the defaulted mortgage plus any applicable fees and expenses (also called "Trustee Sale").
REO
REO stands for Real Estate owned by a lender or government entity (FHA, VA, etc). You will also hear the term “Bank owned” in reference to such properties. REO's are most often post-foreclosure listings that come on the market after the lender or government agency has purchased them at auction.
