Can u pls explain diff/ between preforeclosure, foreclosure, REO, short sale & bank owned?
Very good answer from Shel-lee. Here’s the even shorter version, with a few comments from the home buyer perspective (since you indicate that you’re a home buyer). Preforeclosure: An owner has fallen behind on his/her mortgage payments. If the situation isn’t corrected, it ultimately will result in a foreclosure. Buyer Perspective: You can buy the house directly from the seller. You can either pay: (1) the full amount owed (mortgage, penalties, interest, etc.) or (2) you can pay less than is owed by attempting a short sale. See below. Foreclosure: An owner has been foreclosed upon. The lender owns the house. You’d buy the property through a Realtor, since foreclosures are put on the market through agent. The listed price may or may not be a good value (it often is). If the property doesn’t sell within a set time frame (often 45-60 days), the lender often will reduce the price. You can make an offer for more than, the same as, or less than the listed price. REO: Same as a foreclosure. R
