It is an unfortunate commentary, but when economic activity declining the way it has been  for the last few years, and high interest rates and creative financing arrangements contributed to the situation, the real estate market is at the center of all conversations and households concerns.

A large part of the buyers  use the word “foreclosure” for any “distressed property” which would include REOs ( Bank Owned), or Short Sales.

A property “in foreclosure” is the period of time between the time the seller missed his first payment (and until he gets an NOD – Notice of default) and the time the banks “foreclose” on his home. That when the home becomes a Bank Owned Property.

When buyers are looking for “foreclosures”  they are mainly and generally meaning to look for Bank Owned Properties.

So buyers be aware when looking for “that DEAL” : you want to look for the REOs (Bank Owned Properties) or the Short Sales but if you look for foreclosures be aware that :

Foreclosed properties are very likely to be burdened with overdue taxes,liens and clouded titles. A buyer should do his or her homework before purchasing foreclosure properties. Title insurance may or may not be available following a foreclosure sale and various exceptions may be included in any title insurance policy issued to a buyer of a foreclosed property