Bank-Owned … it is "like totally" the buyer rage.

So we are getting a lot of people asking about bank-owned homes. You probably have been hearing the term "bank-owned" or "REO homes." With all of the new terms, post-market boom, you have probably heard these terms or even possibly the phrase "short sale." What are the differences of the two terms: "Bank-Owned / REO / Foreclosure" and "Short Sale."

Unfortunately the term "bank-owned" is very sad for those it applies to, that whether it be an inappropriate loan, refi(s), homes placed as collateral for other ventures, or relocation ... it is a sad state for some former owners and for that my heart is sad. I still don't understand everything, nor will I ever claim to be an authority on this matter (I leave the "number thinking" to my husband, Steve O the Roseville, Rocklin Realtor®), but I don't think everyone knew the consequences of what they WERE doing getting into some of these homes. Or perhaps they were positive thinkers that this would always last (the market boom and continually rising prices). It is hard to erase the memories of the record-high prices homes were fetching, but to each situation their is a silver-lining [for some ...]

1. What is Bank-Owned? As the term indicates, the property is owned by the Bank now. The home has been foreclosed on the previous owners, and now the "bank," whomever that is, has found a listing agent that will price this home "to move." Meaning, it is ideally it is going to be a good deal in the neighborhood, but this is NOT always the case. Some are originally priced higher, but we would like to think prices may fall if the house stays on the market for too long. Banks do not want to lose any more money than they have to, BUT they also don't want to be selling the house for nothing. Again, I cannot speak or represent a bank, but this is the line of thinking one may approach. Each situation is unique and should be approached as "the unexpected may HAPPEN."

When you see this property listed it will MOST LIKELY say posted on it "Bank-Owned" in the form of a rider, paper posting on the front door or in the window. You are negotiating through the listing agent and the Bank is the seller. Home conditions are NOT always the best. Sometimes the homes have been left with a "visual" thank you note by disgruntled former owners, but not always. Some homes have just been neglected. If you have the eyes to see past the grime, a little handy work (or more in some cases), bank-owned homes are a great opportunity. Don't let paint color or a little neglect get in the way of the integrity of a home. Check out some of these deals. If you are interested we have a search engine set specifically for bank-owned homes, Email us at info@RosevilleAndRocklin.com. There is no obligation and you can quit at ANY time.

2. What is a Short Sale? Generic Heather terms, short sale is where the seller is selling the house for less than he owes on the property. This STILL sale has to be approved by the bank and is not a sure deal (the bank needs various things, which also includes seller proof of why money being owed to the bank will not all be there, so you can see the complexity of the issue). Often times escrow (escrow: when you are locked-IN a deal/agreement to purchase a home) You are STILL dealing with the current sellers of the home and negotiating (through the agent).

Best of luck searching and contact us for all of your real estate needs. We will help you sort through all the homes! 916-308-2446 Steve Ostrom, Realtor® with Coldwell Banker.

ABOVE all, GET PRE-APPROVED by a lender. If you don't have a lender, get one or ask us to refer you to a reputable lender. Get the conversation going. Nothing is set in stone doing so, and you will find out where you stand in home purchases. Information is power. Look at homes you can afford and live an affordable means of living. That doesn't mean sell yourself short, high-expectations that are reasonably met are always important. Set reasonable goals and call us when you are ready to "Make the Jump With Us!"

Or you can email us at info@RosevilleAndRocklin.com