Harmony Homes Realty, Oviedo, Florida
 
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FORECLOSURES / REO FAQ

What does REO stand for?

REO is an acronym for “Real Estate Owned.”  These properties are usually owned by corporations instead of individuals.

What is a Foreclosure?

Foreclosure is actually the process by which a property is returned to the lender or bank.  It is also known as the property that has been foreclosed on already and become bank owned property.  There are different stages of the foreclosure process which buyers may purchase foreclosures.

What is the benefit for purchasing REO properties?

These properties are often sold “as is” which makes them great opportunities for people searching for fixer uppers for a principle residence or investment property.

How is purchasing an REO property different from a regular real estate purchase?
When purchasing an REO property, an “as is” transaction is often required.  You can still ask for concessions, but since they are owned by a corporation, they may require you to sign a special addendum that they use for all of their transactions you will want to read carefully.  They may also require you to use a particular title company or be pre-qualified through a particular lender (although you do not have to use this lender).

What is the difference between Short Sales and Foreclosures?

Short Sale

  • Seller still owns property
    • Title is in seller’s name
  • Distressed Sale
    • Mortgage is usually already in default (behind on payments)
  • Seller tries to sell to save their credit from a Foreclosure
  • 3rd Party Approval Required from Lender
    • Oftentimes More Money is Owed to Lender(s) than House will Sell for
    • May have outstanding liens
    • Approval can take several weeks

Foreclosure

  • Bank-owned Property
    • Title is in bank’s name
  • Foreclosure process is already completed
    • any existing liens have been cleared through the foreclosure
  • Bank is the Seller
    • No 3rd party approval needed

 

 

 
 

 
 

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Phone: 352-804-2671 Fax: 407-366-4731 Kristina.Vavrek@gmail.com