Wellington REOs- How Does Your Home Turn Into An REO?
Whether it's Wellington, Florida or Wallingford, Pennsylvania, I thought this was an appropriate blog to assist others in understanding the options regarding foreclosures and short sales.
Wellington REOs - How Does Your Home Turn Into An REO?
There are two ways in which a home in Wellington Florida becomes an REO. First, let's define what REO is. REO stands for Real Estate Owned. It is a real estate term meaning a Bank Owned Property.
You can read a more in depth article about What Is A Wellington REO here.
The first way and most often way a home turns into a Wellington REO is through a foreclosure process. Here in the state of Florida we are a judicial state and a statutory warranty state. This means that when you buy a property here in Florida whether you pay all cash for the property or you get a loan secured by your property you still get a real statutory warranty deed that you get to hold in your hands and remains in your possession.
Some states have Trust Deeds which is a form of a deed but you don't actually get the statutory deed until after you pay off your loan to your lender. So in those states the foreclosure process is very fast.
In order for a home here to become a Wellington REO the mortgage servicer has to get a judge to order the surrender of your statutory warranty deed to them. This must follow the due process and you get your day in court to defend against this. The foreclosure processs can take anywhere from a few months to a few years.
The day you lose your home by a judge ruling that the bank now has your home you are no longer the owner of your home. That day, the bank owns the property.
On that day, your Wellington home becomes an REO or bank owned property.
The second way that a property becomes a Wellington REO is through a Deed In Lieu.
A Deed in Lieu is in simple terms a foreclosure without going to court. It is a legal way to avoid a court hearing by you turning over your Statutory Warranty Deed to fulfill your loan obligation. Of course, the process of a DIL is not as simple as I just put it. But for the purpose of how a home turns into an REO or bank owned property, this will suffice. The homeowner and the lender must come to an agreement on the terms of the deed in lieu.
At the time that you sign a Deed In Lieu and the bank has agreed you must leave your property. You can no longer live in your Wellington home when you complete the arrangements of a DIL. You also must clear any other obligations such as second and third notes, home equity lines of credit, property taxes and satisfy any liens on your property such as HOA fees and other liens.
There are other options. Many times a Wellington Short Sale is a better option for you. If you choose to do a Short Sale contact us to go over your foreclosure options. You can also learn more about Wellington Short Sales by reading the articles I have written for the past four years regarding Florida short sales.
Nestor Gasset and Katerina Gasset- Realtors®, CIPS, ABR, SFR, GRI, REOS
International Properties & Investments, IncCall us today at 561-753-0135 to get your house sold.
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