What are the different kind of distressed properties?
Short Sale is still owned by the seller. The property may be going through the foreclosure process, or the owner may have just begun to become delinquent in paying the mortgage, or the seller may not be in default at all. The bank ultimately agrees to be paid “short” on the “sale” of the property (i.e, the bank agrees to accept less than what the seller owes on the property). Foreclosure is the process whereby the lender takes possession of the property. Foreclosures are NOT sold by REALTORS®. Real Estate Owned property, REO is a home that goes back to the mortgage company after an unsuccessful foreclosure auction. This property can then be listed by an agent hired by the lender. Lenders want these sold quickly. Buyers may think the only way to get a deal is by purchasing a distressed property. However, the term “distressed properties” does not always mean cheap and the cost of fixing the property only adds to the bottom line. Know your facts before getting involved with REOs. • Most R
