At Vista Properties we can help you with residential properties. When buying or selling real estate, there are 3 main types of sales. These are “traditional” home sales, Short Sales, and REO sales. Each type of sale affects the sale process differently.
A traditional sale involves the seller simply selling the home to a buyer, usually at the current market value. For this type of sale the home owner needs to have enough equity in the property to at least cover the selling fees and the outstanding mortgage balance/ lien(s), if any.
On a short sale, this is when a property is sold by a home owner for less than what is owned to the mortgage/lien holder. This selling process takes a few more steps, and can sometimes take 2 to 4+ months to complete. The real estate agent typically takes care of managing this process.
An REO sale is when a property is sold by the bank or lien lien holder, not the home owner. This means that the owner, at the time of sale, is now the bank. This change in ownership typically occurs when an home owner has had their home foreclosed on, due their default on a loan. A home becoming an REO is the last stage in the foreclosure process.
For more detail see our post tilted “Foreclosure Process.”