Distress Property Listing & Information for
Homebuyers
Definition
- 1) Property purchased with the aid of a loan on which payments
have stopped and the borrower has defaulted. 2) Property that is under a
foreclosure order or is advertised for sale by its mortgagee. Distressed
property usually fetches a price that is much below its market value;
may also require significant repairs.
Foreclosures - AKA Bank Owned/REO (Real Estate Owned)
Property which is in the possession of a lender as
a result of foreclosure or forfeiture.
Pre-foreclosure/Short Sale
When a homeowner stops making payments on their mortgage
loan the lender is left with no other choice but to begin a foreclosure
action. But lenders have a problem now - they are up to their necks in
foreclosure properties! They just can't afford to take back all those
homes. It's too expensive to hold them, repair them and then try to sell
them. That's where a short sale comes in.
If the lender does not want to own the home what can he do when a owner
stops making payments? Well, one of the options lenders are using today
is to help the borrower sell the home by forgiving a portion of the loan
balance. That's right, lenders will often allow a home to be sold for
less than the amount still owing on the mortgage loan! That's called a
pre-foreclosure "SHORT SALE!"
Bank
Owned/REO/Foreclosures and Pre-foreclosures/Short Sales
- Land, Homes
and
Condominiums
currently listed in the New
Smyrna Beach MLS -
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