Frequently asked question...

I was asked several times in the last few days by different clients and visitors to an Open House I held as to the difference between a "Short Sale," a "Foreclosure" and and "REO" (and no, not meaning the 70's band!).
Very simply...

“A short sale occurs when the lender agrees to take less than the full loan payoff of an owner’s property. The homeowner is most likely behind on payments and owing more than the home is worth.

Foreclosure is where the bank takes possession of the property because of non-payment for a long period of time or an unapproved short sale.

An REO is a bank-owned property (“real-estate owned”), when homes go into foreclosure they are sold at a trustee sale, if no one purchases it at the trustee sale, they become REO properties. Later they are often listed by Realtors hired by the bank.”

Hope that clears things up.  If there are any other questions anybody has, do not hesitate to contact me!