Upcoming Foreclosures

Realtytrac categorizes homes into 4 types (Pre-Foreclosure, Auction, Bank-owned, Homes for Sale). What's the..?

difference between Bank-Owned and Homes for Sale? I see some of these "Bank-Owned" homes dating back to August 2008. Have they really been in inventory for that long and why would banks leave them there?

Public Comments

1. Homes for Sale is the usual private sellers [mostly owner-occupied] in the MLS system. Bank-Owned means what it says -- mortgage company or their agent has title, which they got through foreclosure or deed in lieu of foreclosure, etc. *** as to why -- sometimes bank owned also means damaged, or even heavily damaged. you have to go see them to know what the current condition is -- which is good for about one day. some banks aggressively auction off a foreclosure as soon as they get title. others repair the houses first. others are swamped by the volume and no action gets taken for a while -- during which period the property may be damaged by vandals or squatters. rarely, there is some legal issue that needs to be resolved which slows up the foreclosure sale. sometimes a bank-owned was offered through MLS and just didn't sell [usual MLs contract is 90 days, so if bank tries this twice -- the house is now 7 months in their hands.] hope this helps
2. Greg if you're interested in buying a foreclosure, you will have to work with a Realtor. While Fannie Mae and Freddie list their homes on their website, the will refer you to the agent listing that property. Pre foreclosure is most likely a "short sale", Bank Owned is just that it's legally owned by the bank. And yes their could very well be home on the market that have been on the market since Aug 08. I would guess the condition is pretty bad. My advise is to find an agent that has experience with these properties, not just a listing agent. Most of them are way too busy to take good care of you as a buyer. You need your own representation.