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Definitions for Deal-Seeking Buyers: Short Sales, Foreclosures, and REO Homes

HomeLight

You may have heard that short sales, foreclosures, or bank-owned properties offer great opportunities for a steal , but what do these different terms mean, and how does the homebuying transaction work for each? What’s the difference between buying a short sale vs. a foreclosure, and where can the best deals be had?

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Hit Them With Your Best Shot: How Much to Offer on a Short Sale

HomeLight

But what if it’s a different kind of sale … for example, how much should you offer on a short sale? Enter the short sale : a solution for the seller, and a special opportunity for a buyer. What’s a short sale? Short sales are unique because they require the approval of the seller’s lender.

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Buying Foreclosed Homes for Dummies in 11 Steps Even You (Yes, You!) Can Do

HomeLight

A short sale is a type of preforeclosure; when a homeowner stops making payments on their mortgage and owes more on the home than the house is worth in the current market, then they will need to sell the house for less than they owe, and the lender will be “short” on the amount of money they accept in the sale (hence the name).

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How to Buy a Foreclosed Home: The Ultimate Step-by-Step Guide

Redfin

There are several types of foreclosure sales – auctions, bank-owned properties, government-owned properties, preforeclosures, and short sales. Auctions The most common type of foreclosure sale is by an auction. That means there’s no home inspection or appraisal. What is foreclosure?

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How to Find Cheap Houses for Sale

Realty Biz

Look at Short Sales or Foreclosures When the owner fails to pay their mortgage, the lender can take back the property and evict the occupants. With the house vacant, they can put it up for sale on the market. In addition, you can only inspect the property after winning the auction.

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How to Buy a Foreclosure: Your Go-To Guide to Distressed Properties

HomeLight

Again, the timeline varies by state, but this typically begins three to six months after the first missed payment , according to the Department of Housing and Urban Development (HUD). Let’s take a look at the most common foreclosure sales and how they work. Short sale. So, it’s helpful to know precisely how to find them.

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How to Buy a Preforeclosure Successfully: A 13-Step Beginner’s Guide

HomeLight

From the neighborhood to the school district to who built the house and the development, this is your opportunity to dig into your new digs and make sure it’s right for you. Step 9: Get an inspection. With a preforeclosure “you can definitely ask for an inspection,” Piwowarski says. (These often require paid access.).