Short Sale – Escondido Real Estate

What is the difference in a short sale of an Escondido home and a foreclosure? What is an REO and a bank owned property? Escondido home buyers often lump all of these distressed sales together, but they are very different and must be approached in different ways.

Foreclosure, REO, or Bank Owned Property

Let’s start by addressing the foreclosure which is easier to define. A foreclosure is a process where the bank takes back ownership of the Escondido real estate. The bank files a notice of foreclosue against the Escondido home. After 120 days the bank can then take ownership of the property. The homeowner is out of the loop so to speak. Properties that have been taken back by this process are often referred to as bank on properties or reo’s which stands for “real estate owned.” From a buyers point of view, foreclosures, reo’s, bank owned homes are very attractive. Buyers can make offers and the bank can make an immediate decision. For Esconido home buyers needing to move into a home right away this type of purchase beats the short sale.

Short Sale

A short sale is a sale where the proceeds from the sale of the property will not be enough money to pay off all of the leins against the Escondido property. A short sale requires approval from the lein holders. Many times this takes much more time than the Escondido buyer is willing to wait. Short sales have advantages and disadvantages from both the buyer and seller angle. This blog will take a look at all the various angles of the Escondido short sale in future blogs on this subject. For immediate information, call Gary Harmon, your Escondido Realtor. For immediate reading see Gary’s main website.  Get a summary of  “Short Sale Basics.”  Find out  “How to Qualify for a Short Sale.”  Find, “What are the Advantages of a Short Sale.”  And see “Short Sale Supporting Documentation” a lender may need.