Bank owned / short sale – what is the difference?

A bank owned home is just that – a home, owned by the bank taken back as what the bank calls “real estate owned” – or REO as the term is commonly known. This was usually done in the form of a foreclosure or the sellers gave the house back to the bank with a deed in lieu of foreclosure. The bank owns the house outright and has put it on the market to sell.

A Short Sale is where the seller owes more money on the house than its worth and has contacted the bank to sell it for “short” of what’s owed. Typically these can take many months to even get an acceptance and even longer to close.

Chris Farkas
EXIT Realty Associates
www.RealBellingham.com
www.SOundShortSale.com