Keywords: great bargain homes, foreclosures, bank owned, reo, homes below tax value, instant equity
Foreclosure is the legal proceeding in which a bank or other secured creditor sells or repossesses a parcel of real property (immovable property) due to the owner's failure to comply with an agreement between the lender and borrower called a "mortgage" or "deed of trust". A short sale is when a lender agrees to take less than they are owed on a loan against the property in connection with an impending or expected forclosure. The short sale is completed by presenting the lender with a package of documents demonstrating the financial hardship of the owner/borrower, the (reduced) market value of the property, and the difficulty selling the property without a discounted payoff. The process can take 60 days to 180 days or longer, depending on the lender(s), the documentation, and the skill of the person or organization negotiating for the discount. Real estate owned or REO is a class of property owned by a lender, typically a bank, after an unsuccessful sale at a foreclosure auction.[1] A bank will typically set the opening bid at a foreclosure auction for at least the outstanding loan amount. If there are no bidders that are interested, then the bank will legally repossess the property. As soon as the bank repossess the property, it is listed on their books as REO - Real Estate Owned - and is categorized as an asset (non-performing).
