Compiled by Hassan Nicholás
FYI #3...random stuff to know
- Real Estated Owned property or REO means the bank owns the property and is selling it. Bank must deliver the property to a new owner without past liens, either property taxes or HOA dues. Recorded liens - that's the guarantee. Liens that have not been recorded are not necessarily cleared by the seller or guaranteed by the Title Company. Most likely, if the HOA has put a lien on the property, the bank will pay off the lien. The bank can't close escrow unless all liens are paid off.
- The short sale process is lengthy and rarely successful for first-time home buyers. Only 5-10% of short sale listings actually close, according to professionals in the field. Most are taken off the market by the owner itself or because of foreclosure. If you decide to make an offer it is advised that you put a clause in your contract that your deposit cannot be cashed until it is clear that the sale has been approved by the mortgage company and the contract has been signed.
- A trustee sale is when a bank tries to offload a pre-foreclosed property. Typically, the opening bid on a trustee sale is set at the amount of the first trust deed loan balance. Sometimes short sales are taken off the market through trustee sales.
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