Foreclosures and REO’s are “bank owned”
A bank foreclosure is a process in which the bank re-possesses a property for non-payment of the mortgage. (No different than a car “repo”) The original mortgage borrower forfeits the property to the bank, which now becomes the owner of the property. The bank then puts the property back on the market through the MLS and tries to get as much money as they can for it…what was owed on the property is not a consideration, and the bank will try to get market value for the property. Occasionally, the bank may fix up a property, but typically the property is in some kind of distressed condition and will need some repairs.
Trulia and Zillow does not sell foreclosed homes, and those that are listed as “in the foreclosure process” are not on the market and it may be many years before they are ready to go on the market for sale.
Most bank foreclosures are:
- In some stage of distressed condition
- More than likely get multiple offers
- More than likely sell for full price or more
Banks like to have:
- Cash offers
- Few or no contingencies
- “as-is” contracts, with no repair clause
Bank Foreclosures are owned by the bank…”short sales” are not owned by the bank.