what is the difference between ROE-bank owned and notice of trustee sale/auction At what point must the homeowner/person in the home move out?

Asked by life, Livermore, CA Mon Oct 4, 2010

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David Chiles, Other Pro, Los Angeles, CA
Mon Oct 4, 2010
Thank you for your question about foreclosure procedure. An REO is a bank owned property generally without occupants.

The Foreclosure process starts when a homeowner cannot pay the mortgage and ends when the home is resold.

The three stages of Foreclosure are: Pre-Foreclosure, Auction, and REO/Bank Owned. Pre-Foreclosure is the time period a homeowner has to repay the delinquent amount of the mortgage. If a homeowner does not pay the mortgage the home is auctioned. If the bids do not meet the reserve the lien holder (bank) reclaims the property and it becomes a Bank Owned REO.
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Joanna Jensen, Other Pro, Livermore, CA
Wed Nov 10, 2010
Hi Just looking,

Sounds like your doing your homework!!

There is a big difference and both can get you a home at a great price.

A REO, Real Estate Owned property has already been foreclosed upon, and the bank took it back. This is a good way to buy because your able to do inspections, the previous owner is no longer in the home and it Should be less emotional. If you have a realtor that knows how to negotiate these types of deals it can be a great investment.

N.O.S. Trustees Sale, is before the home goes to the bank. However, do know that a home can go in and out of a Sale Date. If a home owner is working to keep their home, their home can show up on trustess sale but be removed at the last minute. I stopped a sale the day before for owners..

So it is very important to know what is behind the notice of sale. Is the home really for sale??? Some owners may list a home for sale but have no intention of selling. I took buyers to see a short sale in Pleasanton and the owner was at home, He gave info that he was also placing a bid on the home and trying to buy it. So, make sure in your efforts that your realtor finds out ahead of time what the intentions are of the home owner.

Are they really selling the home or trying to stop a foreclosure.

Best of Luck,

JoAnna Jensen
Legal Assistant
Volo Law Group
jensenair@hotmail.com
925 699 5041
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