Short Sales, REO (Real Estate Owned) Properties and Auctions

Short Sales
A "Short Sale" is a real estate transaction in which the sales price is insufficient to pay the liens encumbering the property and the sale costs, but the seller is unable or unwilling to pay the difference. It involves a workout solution between the "borrower" a.k.a. seller and ALL of the lien holders involved.
THE SELLER: wants to avoid foreclosure
THE BUYER: wants a good price on a home
THE LENDER:wants to avoid foreclosure and the associated costs
 
REO Property
A home that has been foreclosed upon and is now owned by the bank is referred to as a Real Estate Owned (REO) property. The majority of Arizona foreclosures occur through a trustee's sale. The highest bidder, usually the lender, takes title and becomes the property owner. When they are listed for sale, they are usually referred to as "REO," "bank-owned," or "lender-owned."
THE SELLER: Now the Lender who is accompanied by the usual "red tape"
THE BUYER: wants a good price on a home
THE HOME: usually sold "as is"
Auctions
Sometimes lenders will sell their property through an auction. Buying a home through an auction is not for a novice real estate buyer. Access to the property, advice, property condition become important factors when purchasing an auction home.
THE SELLER: Now the Lender who is accompanied by the usual "red tape"
THE BUYER: wants a good price on a home
THE HOME: usually sold "as is"
Characterized by: often difficult to access property or access property condition; three types: minimum bid; reserve (means it is subject to confirmation (amount is not published and subject to acceptance or rejection); absolute (sale is guaranteed to the highest bidder)
 
FAQs Short Sales»