Are there different types of bank foreclosed homes?
In a word, yes. Foreclosed homes or REO’s (real estate owned homes) are categorized in two basic forms – REO’s (real estate owned homes that have been repossessed by banks and lending institutions as collateral on a loan that is in default) and pre-foreclosures (also called “short sales”). Pre-foreclosures are homes that are being sold by the current owners in the hopes of being able to sell the home before the bank repossesses it because the owners are behind in their mortgage. Pre-foreclosures usually require the lending institution agree to the sale of the home along with the current owners of the property and can be very difficult and time consuming to get to a closing table. For real estate investors or first-time homeowners, the most convenient, easiest, and safest way to get to the closing table is to purchase a real estate owned home (REO). The reason behind this is that, when compared to just about every other form of property purchase, there is no issue of title. The title is
