I can't tell you how many times a week I get asked what the difference is between a short sale and bank owned so thought I'd do my part to get the word out.
A short sale is a home that the seller still owns and usually occupies, however they are unable to sell the home for the full amount owed to the bank. Their mortgage company must approve the sale price of the home. These homes could be in preforeclosure or in foreclosure with an auction date pending.
A bank owned home is a home that has been foreclosed on by the mortgage company or bank that had a mortgage lien against it. The home is no longer occupied.
Currently in Western Washington, approximately 51% of homes are what we call "distressed properties", or short sales and bank owned homes. Many of these homes are in need of repair or have some deferred maintenance. Often times buyers will overlook these homes becasue of concerns about the cost to make repairs. Fortunately there is a mortgage for buyers called a 203k loan that can help with those needed repairs, making some of those homes a great buy!!
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