I am surprised how many calls I get asking for an explanation of the 'type' of listing they are looking at. I thought I'd give you a quick update and if you need or want more information on the subject give me a call and I'll spend some time helping you understand the difference.
Short Sale - This is a property that is for sale it can be anything, single family home, or condominium that the Seller owes more money on the property than they have listed the house for.
Foreclosure/REO - I think REO confuses people the most it stands for "Real Estate Owned" which is how the bank described property they own and have taken back. A foreclosure is basically the same thing the owner lost the house for nonpayment. Remember in California we do not use mortgages we use trust deeds and as a result we don't use judicial foreclosure very often. It has become a generic term that means that bank took the house away from the owner for nonpayment.
Standard or Equity Sale - This is a traditional property sale. The seller wants to sell the house at the list price.
Remember an REO is not always a bargain because the bank may not really know the condition of the property and they aren't obliged to figure it out and tell you. If you are considering purchasing an REO (foreclosure) check to see if there is other standard property on the market close by, it may be a better deal!
Heather@HeatherandSarah.netSarah@HeatherandSarah.net244 Redondo Ave.Long Beach, CA 90803