Types of Foreclosure Properties
Short Sale - A short sale property is the first step in the foreclosure process. These types of properties have had foreclosures filed by the lending agent (Bank) and the owner is trying to sell the property before the foreclosure process is completed to keep a foreclosure off of their credit report. If the seller owes less than the property is worth, they can simply sell the property and walk away. When the seller owes more than the property is worth, they may try a short sale. A short sale is when the seller places the property on the market and brings offers to the bank as they come in. The bank can then decide if they are willing to accept an offer that is less than is owed on the mortgage. Often, banks will accept discounted offers because they know that the foreclosure process is long, expensive and can often bring less money than short sales. There are significant hurdles to overcome with short sale properties and having a dedicated Buyer's Agent will assist with the additional paper work, due diligence, and other issues that may arise. To view all Maui short sale properties, please
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REO (Real Estate Owned) - An REO property is a property which has completed the foreclosure process. The bank is now the owner of the property. Banks are not in the business of owning real estate, and therefore want the property sold and off of their books. This can lead to some really amazing deals on some great properties. REO properties come with their own potential pitfalls. Due diligence is necessary to handle a number of issues. Banks do not offer any seller disclosure, so you must have the home inspected for a myriad of possible pitfalls, financial records must also be examined to determine if any additional financial obligations are attached to the property. Having a Buyer's Agent will make this process more streamlined and much easier to navigate. To view all Maui REO properties, please click here.