Honolulu Distressed Properties: Some Definitions Part 2
Today, many buyers are interested in bargains and some focus on distressed properties that may be a short sale, in foreclosure or is bank owned. Many are confused by these different terms and situations so I thought I would define three common situations and terms.
Today, let's take a look at foreclosure properties:
Foreclosure Properties - These are properties that are in the process of being foreclosed on by the property owner's lender. In the State of Hawaii, all foreclosures are a judicial process. When a property owner falls behind in their mortgage payments, at some point, foreclosure proceedings begin and the process to place the property for public auction begins. If the property is not sold at public auction, these properties will become Lender Owned properties. When they are listed for sale, they are identified in our MLS as "Foreclosure" properties. Many of these sellers are highly motivated and may sell at below market values if they have equity or cash assets to make up any difference in what may be owed on a mortgage.
Next, we'll discuss lender owned properties.