SoldCORE Foreclosures, REOs and Short Sales

SoldCORE - Sold Colorado Real Estate

Foreclosures, REO's and Short Sales

Foreclosures - A foreclosure is when a property owner or borrower defaults on the original terms of the mortgage or promissory note, by not maintaining regular payments.  The Lender or note-holder, then files with the Public Trustee with a Notice of Election and Demand.    Essentially this means they are demanding the borrower gets caught up (pretty much immediately) or they will "foreclose" and have the Public Trustee auction it off at the Sale.

REO's - Real Estate Owned is after the Public Trustee has held the foreclosure sale and no other secondary lienholders exercised their right of redemption, then the original lender that started the foreclosure gets trustee's deed showing them as the new owner.  Banks as a rule don't like to own (or manage) real estate, so they usually hire an asset management company to manage and dispose of the asset.

Short Sales - Short Sales are when you are trying to get your lender or bank to take a smaller payoff than what you owe in order to preven the home from going to the foreclosure sale.