Terms you need to know:
Distressed Property: This term refers to all pre-foreclosure and foreclosed property.
Notice of Default: The homeowner has missed one or more payments and gets this letter saying lender will foreclose.
Short Sale: The lender agrees to settle for less than the full amount due on the homeowners mortgage.
Foreclosure: The process by which the lender takes property from the owner for failure to pay; also the term to describe the foreclosed property itself (a foreclosure).
Auction: Foreclosed property is normally offered at auction firstâ€”auctions are run either by local government (city or county) or by an auction vendor.
Bank Owned or REO (real estate ownedâ€”a banking term): Foreclosed property that is not sold at auction returns to the lender (bank). The lender usually hires asset manager who lists property with an agent.
HUD properties are FHA foreclosures.
FDIC properties are properties that were owned by a bank that went out of business.
For more information about foreclosures, short sales and REOs in the Miami Beach Area, call now: 1.305.741.0741