Foreclosures vs Traditional Sales

There are 4 types of homes on the market.

  1. Homes that owners are trying to sell. These can either be seen through a real estate company or the the owner might be selling it unrepresented.
  2. Homes that are being sold by banks or corporations. Most of these are considered “bank owned” or corporate owned. Most of these will be listed for sale with an real estate agent.
  3. Homes that are being sold, but the owner is either in a financial difficulty or the owner owes more on their house than it is currently worth. Many banks will be shorted what they are originally owed and most of the time the bank is willing to take a loss on the home. These can be called “short sales” or pre-foreclosure.
  4. If a home is in default and the loan situation is not resolved, the bank can proceed to foreclose on the home. These are called foreclosure sales as they occur on the courthouse steps and the bank is looking to sell the home to bidders who are willing to pay the opening bid or higher. Many of these homes are not well advertised but can be options. If they are not sold at the auction the bank will take over and then sell them as a bank-owned home.

Foreclosure auctions can be entertaining when people are bidding on homes. The Aaron Drussel Group has helped clients buy investment and homes to live in at the foreclosure auction. For more information on the different types of homes for sale, feel free to give us a call.