REO vs Short Sales - Tom Lifrieri

Short Sale vs. Bank Owned vs. REO

What does it all mean?

Terms defined:

Short Sale-In order for the sale to be consummated the lender(s) will be required to accept a sale price below the sellers loan balance(s)

REO- Real Estate Owned- Also called Bank Owned. The term that the banks call the property that they have acquired via foreclosure

Here is a brief description of Short Sale properties vs. Bank Owned/REO properties

Short Sales: The owner has petitioned with their lender(s) to accept a price that is less than what is required to pay off the entire loan balance. This can be a lengthy process and is dependent on many factors. Commonly the seller must prove some type of hardship (loss of income, job transfer, illness, death, divorce etc) not just because they owe more than the home is worth. In most cases lenders will not discuss this option unless the seller is delinquent on the mortgage. The sale is entirely up to the lender to approve the seller’s qualifications. The sale may be rejected if the offer is too low, the seller has no real hardship, the seller has other resources, the property is an investment property, fraud and a number of other situations. Buyer seeking these types of properties should be knowledgeable and work with a realtor that knows the process and how to protect your best interest. Many great properties can be acquired via a short sale. I have extensive experience helping my clients locate and purchase these types of properties. Call me for HELP! (813) 997-0288

Click here to view Tom’s available Short Sale Properties

Bank Owned/REO: The property went through the foreclosure process and did not sell at auction on the court house steps, so the bank/lender is now the new owner. The banks/lenders are not in the business to own real estate, so they want these homes sold ASAP. They commonly contract with a Realtor to sell the home at a very aggressive list price. The home is typically sold in "AS IS" condition and it may or may not be in need of repair. These homes are highly sought after because there is no real waiting as with the short sale process. Many times there will be multiple offers on the same property and a bidding war starts. Don’t get involved with bank owned/REO properties unless you are ready to buy, willing to pay the asking price and compete with other buyers. Some of the best values in today’s market are Bank owned/REO properties. I have extensive experience helping my clients locate and purchase these types of properties. Call me for HELP! (813) 997-0288

Click here to view Tom’s available Bank-Owned/REO properties

Remember: My services are free to buyers. It cost you nothing to have me represent you, but it could cost you thousands not to.