What is the Difference Buying a Bank-Owned REO vs. a Short Sale?
REO stands for ” Real Estate Owned,” and is another way to refer to a “Bank Owned” property. This is property that the bank has taken back through foreclosure and failed to sell at the trustee sale. These properties are also known as Bank “Repos.” A Short Sale occurs when a seller who is behind in his payments attempts to sell his house before the bank takes the property through foreclosure. To do this, the Real Estate Agent negotiates with the bank to accept less than what is owed on the property. This is known as a Short Sale. With a Bank Owned REO, the bank is the owner and makes all the decisions regarding the sale. They typically sell the properties “as is” and with minimal disclosures. REO properties are vacant and once a deal is agreed to, the sale takes place quickly. With a Short Sale, the homeowner is still technically the owner of the property and must agree to the sale terms in addition to the bank approving the deal. In a Short Sale, the seller is still typically living in
