Distressed Properties

What is the difference between REO and Short Sale Properties?

REO/Foreclosed Properties

REO is short for Real Estate Owned property, which means the property is owned by a bank. Property that has been foreclosed on, didn't sell at auction, or the lender accepted a deed-in-lieu of foreclosure and now became bank owned property. The bank works directly with a realtor to list the property and diligently to clear any marks showing on title. Sometimes banks will repair and improve the property to get 'top dollar' but this is not always the case. Typically, banks are quick to move these properties as they are in the business to lend and not own homes. This doesn't mean the banks are willing to accept any offer, as they are still required to show their investors and shareholders they have made every attempt to get 'top dollar' for the property. When buying a bank-owned property, there is often a lot of departmental hoops you have to jump through. Making sure you have the right team of advisors - like The Bieber Group! - to help you maneuver through these obstacles is crucial.

Short Sale Properties

A short sale is a property being sold for less than the current mortgage. In certain situations, the bank is willing to sell a property for less than what is owed to avoid the high cost of foreclosing. Every bank has their own requirements for approving short sales which can make the buying process long and doesn't always guarantee the sale will go through. 

If you're in the market for an REO or Short Sale property or just have additional questions call The Bieber Group 623-282-4328 - we love answering questions!

All information should be verified by the recipient and none is guaranteed as accurate by ARMLS. Copyright 2018 Arizona Regional Multiple Listing Service, Inc. All rights reserved.