What’s The Difference Between REO And A Foreclosure?

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An REO or Real Estate Owned property and a foreclosure may sound like the same thing; however, it is important to be able to distinguish the two. Knowing the difference between both real estate terms helps one understand the intricacies of Portland foreclosure listings and Portland REO.

Understanding Foreclosures

Defined in simple terms, a foreclosure is when the lender, mortgagee, or lienholder takes possession of a property back from the owner. If, for whatever reason, the owner of the home neglects to make mortgage payments, the bank or lending institution can initiate the foreclosure process. This process can be very complicated, emotional, and time consuming, and there are many variables that can change based on an individual’s situation. It is important to seek counsel can take all the details into consideration. Please contact us so we may help you navigate the foreclosure process with as little damage as possible.

When the foreclosure process concludes, Portland, Oregon foreclosures can be auctioned off at Trustee Sales at the court house and the home or property must be fully paid by cashier’s check during the auction. Buying a foreclosure can be risky and have a level of complication, proceed with caution and seek professional advise and counsel.

Real Estate Owned (REO) Properties

When a home or property doesn’t sell to a new buyer at the Trustee Sale during the foreclosure process, the property is taken back or bought back by the bank or the mortgage company. Because of an unsuccessful mortgage auction, the property is deemed foreclosed and officially becomes a Portland REO. As banks and lending institutions want to sell the property relatively quickly, they generally remove liens on the title and settle things that would otherwise delay the sale.

Bank owned properties, also known as REOs, typically will be listed by a Realtor making it easier to market and sell the property. NW REO Team, a division of WestOne Properties, LLC specializes in distressed properties, foreclosures, and REO’s. With their management strategies, creative approach, and hard work REO listings are sold quickly in the Oregon market.

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