Bank Owned Search
RE/MAX Beaches can assist you with all aspects of the distressed property market. The majority of our real estate associates are CDPA (certified distressed property expert) qualified, and we are always happy to share our expertise. We also have access to all the latest distressed property listings throughout the entire region.
We understand that bank owned properties can cause confusion. We hope our guide helps you better understand the different terminology involved. Please feel free to Contact Us at any time if you have any further questions.
Short Sale: This results when a homeowner is trying to sell a property and they owe more than the home is worth. When this happens, the homeowner will sell the property and through a series of negotiations their lender agrees to make up the difference between what is owed on the mortgage and the current purchase price. Banks will do this to save time and money to avoid the expensive foreclosure process. The new buyer walks into equity, and the seller avoids a foreclosure and gets out from under the loan. The short sale process can be a little lengthier than a traditional sale, although many banks have expedited the process from 6 months or more to just 60 – 90 days.
REO (Real Estate Owned): When a property does not sell through the short sale process, the bank or lender will ultimately foreclose on the property and take possession. The bank will then hire a real estate brokerage to market the property and sell it in the traditional manner. It is at this point that it becomes an REO property, and this situation is more favorable and less risky for a buyer. Advantages include purchasing through the traditional sales process with an agent, escrow, title insurance, inspections, appraisal, and contract contingencies, and buying from a motivated seller (the bank) that is not emotionally attached to the home. There can be savings of up to 20% off home market values, negotiable closing costs, and immediate occupancy. A foreclosure property can come with many risks and contingencies for the buyer, whereas an REO is the exact same property without any of the potential problems.