What types of foreclosure properties are there?
A foreclosure property exists in three primary stages: pre-foreclosure, auction property, real estate owned (REO). A pre-foreclosure occurs when the lender initiates foreclosure proceedings as the result of a default. If the borrower cannot cure the default by paying off the back payments (arrears) and does not sell the property, it is sold at a public auction. If no one buys the property at the auction, it reverts back to the lender and becomes a Real Estate Owned (REO) property.
