Nelly H asked:


need to know the difference between short sale & bank owned homes.

Samantha

4 Responses to “what is a bank owned home?”

1. aaron on February 19th, 2009 11:45 pm

   a short sale is where you settle with the lien holders for less then what you owe them to sell the home, a bank owned property is when the bank forecloses on the home therefore owning the home

2. abeski1019 on February 20th, 2009 10:48 am

   Bank owned is when the bank has foreclosed on the home. A short sale is when you can get the bank to agree to sale the home for less than you owe on the home.

3. 9 daughters on February 21st, 2009 11:01 am

   A Short Sale is before the foreclosue, bank owned comes after. In a Short Sale, the owner has defaulted on the loan and the lender agrees to take less than what’s owed instead of going through with a foreclosure. Why? Lenders often lose money too when homes are foreclosed.

   The bottom line is a lender will always take the cheapest way out. A lender may agree to a Short Sale if they figure they’ll lose less than if they foreclose. If it’s the other way around the lender will foreclose and then the home becomes REO (Real Estate Owned).

4. Alterfemego on February 23rd, 2009 12:34 am

   Short sale is still owned by the homeowner. Bank owned is just that, the bank owns it (is in title to property). Short sale is a little more difficult to deal with in that any offer has to be approved by the lender. A bank owned property should have an offer answered within a reasonable amount of time, unless there are issues with the property and repairs have to be made. Then count on several months to resolve those issues and close. Not a fun process for anyone, especially the realtors.