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Monday, March 01, 2010

REO, Bank Owned, Foreclosure Properties Are Not The Same as Short Sales

 The real estate market in Florida, especially Brevard County, calls out to buyers...

"Look for REO/Bank Owned Properties. Check out the foreclosures! Look at all the short sales!  The prices are so low!"

The truth is each of these types of properties is different.  They all have their good points as well as bad. And they all are rarely a good choice for most buyers.  

More importantly, they are priced differently so don't expect to get a regular, fair market property for the price of these!

REO or foreclosed property have already been through the repossession process.  The sales are by the lender or trustee.  These properties have likely been neglected, stripped of fixtures and appliances (and more), in need of major repairs and possibly more. 

That is why the price is lower for foreclosures.  They are not the same as short sales or fair market (regular sales). 

Short sales are situations where the owner owes more than the likely sales price. In these cases the lender will have to approve any offer.  They can take a long time to close!  Many owners remain in the short sale properties throughout the process. 

Short sale properties are usually in better condition than foreclosures because the sellers want to get he most money possible.  While short sales may be discounted a bit they are not the same as a foreclosure listing!

If you are interested in short sales or bank owned properties in Brevard County, Florida, let me know.

Gary Waters, Florida licensed real estate agent, Bucci Realty, Rockledge, Florida working exclusively with Century 21 Baytree Realty.

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