We use the term “distressed” to describe two main types of properties:

• Foreclosed or REO Property – A foreclosed (or Real Estate Owned) property is also sometimes called lender owned. These properties have been reclaimed by the bank after the homeowner failed to make successive payments on the mortgage. Foreclosed properties are typically vacant.
• Short-Sale – A short sale occurs when a homeowner is unable to maintain the mortgage but the bank agrees to the sale of the property for less than the balance of the loan instead of initiating foreclosure proceedings. A short-sale can allow a homeowner to avoid foreclosure and protect their credit.

Both types of property conditions can represent fantastic values if you know when and where to look. Add into the picture today’s historically low interest rates and home prices and you’ve got the perfect buying opportunity.

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