Honolulu Distressed Properties: Some Definitions Part 3
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 lender owned properties:
Lender Owned Properties - These are properties that have been foreclosed on by the lender. At public auction, there were no buyers, so as a result, the property is now owned by the lender. Typically the lender's asset managers will list these properties with real estate agents. When they come on the market, they are identified in our MLS as "Lender Owned.
Also referred to as REO properties, REO stands for Real Estate Owned. These are properties that have already been foreclosed on, so the bank is now the owner/seller. The bank now wants to sell the property hoping for fair market value.
The approval process is much quicker than the short sale process, only taking 1 to 2 days for a response from the bank. The property will be sold in "As Is" condition, and a Seller's Disclosure will not be provided by the bank. You are still allowed to ask for a home inspection period, termite inspection, and survey like a normal transaction.
Mahalo For Reading.