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What is the difference between a foreclosure and REO

This question comes up quite often these days - "What is the difference between a foreclosure property and REO (real estate owned)?

A foreclosure is a legal process in which, against the wishes of the owner, real property is sold to satisfy a public or private debt for which the real property has been pledged as security.

Real Estate Owned (REO) is real property that has been foreclosed by a lender and is now owned by the lender.

There's a lot of confusion between a foreclosure and REOs. When real estate buyers call me asking about foreclosures in most instances, they are really inquiring about REOs and here's why?

READ FULL ARTICLE ON THE DIFFERENCES BETWEEN REO AND FORECLOSURE HERE

SEARCH ALL FORECLOSURES AND REOs in San Gabriel Valley

Posted by Pasadena CA Real Estate - Irina Netchaev on 01/05/2009 01:28 PM

Comments (8)

foreclosure, reos, bank owned homes

This post has been included in California Information Los Angeles County, CA Information

8 Comments on What is the difference between a foreclosure and REO

JAN

Irina - good article on the difference between the two - many consumers do not understand the difference.

Knowing the difference between REO and foreclosure are still very misunderstood. It is always helpful to keep providing consumers with this information to help them understand if they buying or selling.

Irina: Thanks for explaining the difference between a foreclosure and a REO. People use them interchangeably when that is misleading. I hope you enjoyed your holidays and have a wonderful new year.

Good to see the difference in print. I'll be glad when we don't have these to deal with.

JAN

Hello ladies,

Happy New Year to all of you! Thanks for stopping by my blog. :-)

FEB

Irina - missed this the first time around. Yes, it IS an area of much confusion, and some significant differences in terms of the purchase process. I have buyers all the time asking about foreclosures, adn of course what they are interested in is a property that HAS been foreclosed. No one even asks about short sales anymore.

Jeff

FEB

Jeff, yes... there's so much misunderstanding about short sales, foreclosure sales and REOs. Hopefully, this post will shed a little light on the subject.

Hi Irina,
Unfortunately the terms are used interchangeably and that is unfortunate and of course, inaccurate. Good job setting the record straight.

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