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Art Cell: 818-383-2792
Aida Cell: 818-371-5742
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You've been looking online, or in the paper, at current listings.. You keep seeing the same words come up.. these definitions are very, very basic, but, they will give you a general idea..
What is a FORECLOSURE?
A situation in which a homeowner is unable to make payments on his or her mortgage. In this situation the lender, will seize and sell the property as stipulated in the terms of the mortgage contract.
What does REO or BANK OWNED mean?
REO is short for "Real Estate Owned". The acronym "REO" and the words "Bank Owned" have similar definitions: REO's are properties which are in posession by the lender as a result of foreclosure or forfeiture. The term "Bank Owned" refers to the fact that the particular property is owned by a bank or financial institution. "Lenders" are often Banking Institutions, however, there are also other alternate types of mortgages such as private companies or individuals.
What is a SHORT PAY ?
A Short Pay (AKA Short Sale) is a Real estate sales transaction executed with the understanding that the seller will payoff their lender less than what is owed on the property. A "short sale" is a term that describes a transaction where the proceeds from a sale are less than the total amount owed on the property and the lender has agreed to accept the proceeds (and cut their losses). In a nutshell, a homeowner owes $500,000 on a property that is currently worth $400,000 and the lender is "ok" with accepting the lower price on the property.
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