More specifically, there are agent who specialize in "listing" bank owned properties. These agents are call REO agents. This type of agent, however, usually does not work with buyers. They concentrate on their listings from the bank's point of view, always trying to get the best deal for the bank.
There are other types of agents, like myself, who work with sellers who are underwater on their property or have a financial situation that forces them into a pre-foreclosure or foreclosure situation. The only way this type of seller has to sell their house for less than what is owed on the property. The only way this can be done is either for the seller to bring a large sum of cash to the closing to pay the difference between what the house sells for and what is owed on the mortgage. Or, the most common option is to sell the house on "short sale". In a short sale, the lender agrees to accept less than what is owed on the mortgage, hence the term "selling short" or short sale. This process can take anywhere from 2 months to over a week. Typical timeframe is 4 - 6 months.
If you would like to understand more about the foreclosure or short sale process, visit my website at kaperproperties.com. Or if you would like a list of bank owned or short sale properties in and around the Royal Oak, Birmingham, Troy, Bloomfield areas, please call me or sent me an email. I live in Birmingham and have my office in Troy, so I know the area very well. I am also an investor and can advise on cap rate and cash on cash return if you are looking for an investment property. Good luck in your property shopping.
Kathy Persha, Broker
GRI, CDPE, SFR, CIAS
Nextage Advanced Realty