| yers are seeing many more homes for sale | | | | Short Sale |
| today with terms like REO, foreclosure, short sale, | | | | - When a seller is in a distressed situation and the |
| and others. All these terms have something to do | | | | offer that is submitted does not cover the |
| with a bank, but here's an explanation for each: | | | | expenses to sell the home and pay off the |
| - Bank Owned | | | | lender, the seller may ask the bank to take a |
| - The bank has aquired title (ownership) to the | | | | "short payoff" on the loan, meaning to accept less |
| property. The bank is the seller. | | | | than what was owed. Banks will sometimes do |
| REO or "Real Estate Owned" | | | | this because they do not want to own homes, |
| - Can be read simply as "bank owned" | | | | they want to make loans. Each circumstance is |
| Corporate Owned | | | | different and the bank is not required to accept |
| - Many times this is just another way to say | | | | any short payoff. |
| "bank owned" | | | | Sherriff's Sale |
| Foreclosure | | | | - In Minnesota, the foreclosure process finishes |
| - This is the process by which a lien holder aquires | | | | with a "sherrif's sale" of the home. The county |
| the property through court procedures. Each | | | | sherriff holds an auction where all interested |
| state operates a little differently, but this process | | | | parties make a bid for the home. Most often a |
| can typically take several months once started | | | | representative of the bank is the only bidder for |
| and typically does not start until the owner is | | | | the home. |
| 60-90 days behind. | | | | Redemption Period |
| Pre-Foreclosure | | | | - In Minnesota, this is a 6 month window from the |
| - This is commonly referred to as the time during | | | | date of the sheriff's sale that the property owner |
| the foreclosure process but before the sheriff's | | | | can still occupy the home and if they can get the |
| sale. In this time period you are still negotiating | | | | cash or funding, they can pay off the entity that |
| with the seller but the bank may have to be | | | | bought it at the auction (most often the bank) |
| consulted in cases where a short sale is needed. | | | | and keep the home. |