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Definitions for Deal-Seeking Buyers: Short Sales, Foreclosures, and REO Homes

HomeLight

You may have heard that short sales, foreclosures, or bank-owned properties offer great opportunities for a steal , but what do these different terms mean, and how does the homebuying transaction work for each? What’s the difference between buying a short sale vs. a foreclosure, and where can the best deals be had?

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A transparent foreclosure marketplace reveals hidden equity

Housing Wire

“A foreclosure sale usually represents the last chance for a distressed homeowner to benefit from any equity in a property being foreclosed,” said Ali Haralson , Auction.com president. “If Short sales really provide for a graceful exit from the property if the homeowner can no longer afford the mortgage,” Wells said. “So

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How and When to Buy Foreclosure Property

Realty Biz

Investors are looking at the current economic situation and anticipating that an even bigger spike in foreclosures is on the horizon. Many of these will be new investors that don’t have experience with the pre-foreclosures, short sales, and foreclosures, that occurred during the Great Recession.

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How to Buy a Foreclosure: Your Go-To Guide to Distressed Properties

HomeLight

They’ll put the house up for auction either in a sheriff’s or public trustee sale (the name depends on what foreclosure process your state follows). Bank-Owned or REO: If a home doesn’t sell at auction, it becomes a real-estate owned home , meaning the bank or lender officially owns it. Short sale.

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Buying REO Homes? Here’s What to Do — And What Not to Do — According to Experts

HomeLight

In the market for a “ real estate owned” property ? REOs for short, these kinds of sales expose buyers to a lot of potential risk. But they also provide a lot of opportunity for big return on investment, too — much bigger, and faster, than you might expect with many traditional sales.

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How Do I Find an REO Buyer’s Agent Who Knows Bank-Owned Home Sales?

HomeLight

But then, it went into foreclosure and didn’t sell at auction, so now it’s listed as an REO, or real estate-owned property. Even experienced homebuyers who’ve already bought and sold a few homes will find the process much different, and they will also need an agent who specializes in REO sales. What’s an REO home?

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What Are the Pros and Cons of Buying a Bank-Owned Home?

HomeLight

Here, we break down the major pros and cons of buying a bank-owned property to demystify the process and prepare potential buyers. What is a bank-owned home? A bank-owned home, also known as “real estate owned” (or REO for short), refers to properties that have been foreclosed with the ownership transferring to the bank or lender.

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