Wednesday, September 28, 2011
Monday, September 19, 2011
what is the difference between foreclosure, REO, Bank Owned, HUD/VA property and Short Sale homes in the vintage point of a Buyer?
- Foreclosure is a the process the mortgagee (any entity or private individual who lend money to purchase the property) use to take back property from a home owner who has defaulted in his/her mortgage payment.
- REO meanning Real Estate Owned is a property owned by a lending entity after being foreclosed. Usually, when this entity is a bank, they just use the term Bank Owned.
- The Department of Housing and Urban Development HUD a government entity, insures low income/credit challenged to buy a home. When theses homes become foreclosed, they are own by HUD and put on the market for sale.
- VA is another government entity which guaranty military and their family member loans to purchase a home. When they default on this type of loan, the property is reverted to the VA administration and put for sale on the market.
- Short Sale is a property on the market where the Lender agreed to take a loss on their investment in order to help the home owner sell it for less than he/she/it owns but, at a market fair value.
Thank you and don’t forget to visit our website at www.nafidiallorealty.com to search for houses in the whole USA.
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