What Is An REO vs Short Sale?

Here's something you might be wondering: What's the difference between an REO property and a short sale?

An REO property is one that has already gone through foreclosure and is currently owned by the bank, which is trying to sell it to a buyer.

A short sale is a real estate transaction that takes place when an owner owes more on the mortgage than the house is currently worth and the bank agrees to a sale for less than the full mortgage balance in order to avoid foreclosure. A property involved in a short sale is not bank owned.

The number of short sale transactions has increased in recent years, and you're likely to run into homes like this on the market as you view properties. As with REOs, short sales can be complicated.


TIP

Despite what you may hear on TV, buying foreclosures is not a get-rich-quick scenario. REOs can offer a way to buy property at below-market prices, but the process is different than an average home sale.

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Aaron Jones

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Community Updates

Weasy’s Lounge & Grill

Weasy’s Lounge & Grill in Spencer

Known locally as the Home of the “Weaser pleaser” you’ll find a full menu with a little something for everyone. The dunker burger, fried pickles, breaded cauliflower, and the crab rangoons come fully recommended. I’ve never had a meal or appetizer I wouldn’t recommend. Friendly staff and servers all inside a fun, clean, and inviting atmosphere! Located right on Grand Avenue in Spencer, Iowa they cover all your catering needs. Dine in, carry-out, reserve a party room, or stop in for Happy Hour!!

Real Estate and MLS Homes For Sale in Spencer

Miller's Bay

Miller's Bay in West Lake Okoboji

Miller's Bay, on the west side of West Lake is a popular spot for boaters in the summer to just go chill out, throw an anchor, and relax. On the weekends, this bay is filled with boats tied up to each other offering families the opportunity to have the kids swim, or you might find a bunch of party animals chugging beers and enjoying the summer sun. Either way, everyone is having a great time, and so if you are out and about, just know that Millers Bay is where boaters go in the summer to be where the party is at.

Real Estate and MLS Homes For Sale in West Lake Okoboji

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