Roseville, Rocklin, Lincoln, Loomis, Granite Bay - Placer County, California - Real Estate Blog - Souza Realty

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What Is The Difference Between Preforeclosure, Auction and Bank Owned Properties?

What Is The Difference Between Preforeclosure, Auction and Bank Owned Properties?

When people visit our website SouzaRealty.com for a free foreclosure search, they have the option to search for foreclosures in three different categories within the foreclosure timeline:

 

Preforeclosure

Preforeclosure properties are those that have been issued a Notice of Default by the lender ("Beneficiary"). This is the first step the Beneficiary takes in the foreclosure process. After 3 months of missed mortgage payments, a Notice of Default may be filed with the County Recorder and mailed to the Borrower. Many properties in Preforeclosure are also listed as short sales and can be "active short" (available) or "active short contingent" (an offer has already been submitted to the bank).

 

Auction

Auction properties are those that have been issued a Notice of Trustee's Sale with an auction date. The Notice of Trustee's Sale is filed with the County Recorder, mailed to the Borrower as well as the Occupant, and also posted on the front door of the property. The auction date may be postponed due to Bankruptcy, Beneficiary's Request, Mutual Agreement or even for No Reason. If it is not postponed, an Auction property will be sold to the highest bidder during the Trustee's Sale. If no one bids, the property becomes Bank Owned.

 

Bank Owned

Bank Owned properties are those that have reached the end of the foreclosure process and did not sell to a 3rd party at the Trustee's Sale but have "sold" back to the bank. These properties are also known as REOs (REO = Real Estate Owned). They remain in "shadow inventory" until they are ready to be listed for sale by an REO listing agent. It could take anywhere from a couple of weeks to a couple of years (or more) for a Bank Owned property to be listed for sale on the MLS.

 

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BOB & LEILANI SOUZA
Real Estate Investment Specialists
Southwest Placer County, CA

Souza Realty, Bob & Leilani Souza - Real Estate Investment Specialists in Southwest Placer County, CA

Bob Souza - 925.513.3400 - bob@souzarealty.com

Leilani Souza - 916.408.5500 - leilani@souzarealty.com

Souza Realty - Real Estate in Roseville, Rocklin, Lincoln, Loomis and Granite Bay, CA

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Comments

Nicely done, succinct explanation of these 3 categories.

Posted by Michelle Carr-Crowe-Top 1% Diamond Certified Real Estate Team Sells Cupertino San Jose Homes-Just Call 408-252-8900, Family Helping Families Buy & Sell Homes 40+ Years (Get Results Team...Just Call (408) 252-8900!) about 7 years ago

Leilani:  Excellent job of highlighting the differences.  I'm sure it's a question that clients have asked you in the past...thanks for sharing your knowledge.

Posted by Anita Clark, Realtor - Homes for Sale in Warner Robins GA (ColdwellBanker SSK Realtors ~ 478.960.8055) about 7 years ago

Thanks, Michelle! Although we know the lingo as real estate professionals, it doesn't mean that these terms are "self-explanatory" to the general public. :)

Leilani

Posted by Bob Souza (925) 513-3400 & Leilani Souza (916) 408-5500 Souza Realty - Real Estate Broker in Placer County, California, Homes & Land, Real Estate Investments and Rentals (Souza Realty - Roseville, Rocklin, Granite Bay, Loomis, Penryn, Newcastle, Lincoln, Auburn, Meadow Vista (Placer County, CA)) about 7 years ago

Anita, thank you...and you're welcome! It is quite a frequently asked question, which is why I've decided to write a blog post about it. :)

Leilani

Posted by Bob Souza (925) 513-3400 & Leilani Souza (916) 408-5500 Souza Realty - Real Estate Broker in Placer County, California, Homes & Land, Real Estate Investments and Rentals (Souza Realty - Roseville, Rocklin, Granite Bay, Loomis, Penryn, Newcastle, Lincoln, Auburn, Meadow Vista (Placer County, CA)) about 7 years ago

Hi Leilani,

Your blog has a nice, clean, symmetrical look.

The information is good also. And you had the foresight to provide a link to your website for each category.

Good job!

Phil

Posted by Phil Leng, Phil Leng - Retired (Retired) about 7 years ago

I appreciate your compliments, Phil...thank you so much for stopping by! :)

Leilani

Posted by Bob Souza (925) 513-3400 & Leilani Souza (916) 408-5500 Souza Realty - Real Estate Broker in Placer County, California, Homes & Land, Real Estate Investments and Rentals (Souza Realty - Roseville, Rocklin, Granite Bay, Loomis, Penryn, Newcastle, Lincoln, Auburn, Meadow Vista (Placer County, CA)) about 7 years ago

Leilani,

Many of the media reporters lump all these categories together. That is so confusing. I'm sure your clients find your wise choice to separate each category of distress properties really is helpful.

Best,

Steve

Posted by Steve, Joel & Steve A. Chain (Chain Real Estate Investments & Mortgage, Steve & Joel Chain) about 7 years ago

Great job Leilani on explaining these three categories and have suggested this for a feature.

Posted by Rebecca Gaujot, Realtor®, Lewisburg WV, the go to agent for all real estate (Perry Wellington Realty, Adam Conrad, Broker) about 7 years ago

Leilani, the public is confused about all these different terms, and you laid it out quite plainly - great post!

Posted by Joan Cox, Denver Real Estate - Selling One Home at a Time (Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373) about 7 years ago

Leilani, great job on this!  You explained it clearly and concisely.  Have a wonderful weekend!

Posted by DeeDee Riley, Realtor - El Dorado Hills & the Surrounding Areas (Lyon Real Estate - El Dorado Hills CA) about 7 years ago

Bob & Leilani - What a great explanation.  I know so many buyers are very confused and don't know the difference.

Posted by Michelle Gibson, REALTOR (Hansen Real Estate Group Inc. ) about 7 years ago

You're right, Steve...it is confusing to know the differences between these types of foreclosure properties, so I thought this was a perfect blog post to write! :)

Leilani

Posted by Bob Souza (925) 513-3400 & Leilani Souza (916) 408-5500 Souza Realty - Real Estate Broker in Placer County, California, Homes & Land, Real Estate Investments and Rentals (Souza Realty - Roseville, Rocklin, Granite Bay, Loomis, Penryn, Newcastle, Lincoln, Auburn, Meadow Vista (Placer County, CA)) about 7 years ago

Thanks, Rebecca...I appreciate you suggesting this for a feature! :)

Leilani

Posted by Bob Souza (925) 513-3400 & Leilani Souza (916) 408-5500 Souza Realty - Real Estate Broker in Placer County, California, Homes & Land, Real Estate Investments and Rentals (Souza Realty - Roseville, Rocklin, Granite Bay, Loomis, Penryn, Newcastle, Lincoln, Auburn, Meadow Vista (Placer County, CA)) about 7 years ago

Joan, thank you and I'm glad this post will help clear up any confusion buyers have about the difference in the types of foreclosure properties! :)

Leilani

Posted by Bob Souza (925) 513-3400 & Leilani Souza (916) 408-5500 Souza Realty - Real Estate Broker in Placer County, California, Homes & Land, Real Estate Investments and Rentals (Souza Realty - Roseville, Rocklin, Granite Bay, Loomis, Penryn, Newcastle, Lincoln, Auburn, Meadow Vista (Placer County, CA)) about 7 years ago

Thank you, DeeDee...and I hope you have a GREAT weekend, too...and a wonderful Valentine's Day! :)

Leilani

Posted by Bob Souza (925) 513-3400 & Leilani Souza (916) 408-5500 Souza Realty - Real Estate Broker in Placer County, California, Homes & Land, Real Estate Investments and Rentals (Souza Realty - Roseville, Rocklin, Granite Bay, Loomis, Penryn, Newcastle, Lincoln, Auburn, Meadow Vista (Placer County, CA)) about 7 years ago

Michelle, this is probably one of the most frequently asked questions we get from buyers, so I'm saving a link to this post on my "links" sidebar! :)

Leilani

Posted by Bob Souza (925) 513-3400 & Leilani Souza (916) 408-5500 Souza Realty - Real Estate Broker in Placer County, California, Homes & Land, Real Estate Investments and Rentals (Souza Realty - Roseville, Rocklin, Granite Bay, Loomis, Penryn, Newcastle, Lincoln, Auburn, Meadow Vista (Placer County, CA)) about 7 years ago

Hi Bob and Leilani,

 

Thank you for a great post. I also get the question from buyers on this one regarding how long does it take on average to close a short sale or REO.

Thank you,

 

Arpad

 

 

Posted by Arpad Racz, 408-252-0976 - www.aracz.com - Cupertino and Bay A (Altas Realty) almost 7 years ago

You're welcome, Arpad! :)

Leilani

Posted by Bob Souza (925) 513-3400 & Leilani Souza (916) 408-5500 Souza Realty - Real Estate Broker in Placer County, California, Homes & Land, Real Estate Investments and Rentals (Souza Realty - Roseville, Rocklin, Granite Bay, Loomis, Penryn, Newcastle, Lincoln, Auburn, Meadow Vista (Placer County, CA)) almost 7 years ago

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