Real Estate Terms explained
Bank Owned / REO’s:
If a lender forecloses on a property, they will enlist the help of a Realtor to sell the home on the open market. The lender will make sure the title is clear and sometimes complete repairs and/or maintenance on the home prior to listing it for sale.
Short Sale:
A short sale is when a homeowner is selling their home for less than what they owe on the mortgage. They must sell the home “subject to lender’s approval”. Depending on the lender and how many loans are on the property, this process can take anywhere from 45 days to 9 months.
Public Auction:
Buyers can bid on the property at public auction (usually held on the court house steps). In this scenario, buyers are usually required to pay in cash and have limited time to research the property condition and title. Though there are good deals to be had at auction, it is best to do your research beforehand!
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For more information on the foreclosure process, time lines or for options as a seller or buyer, please feel free to contact us.
