Short Sale, Bank Owned, Foreclosure Buttons

Agents asked for a “short sale” button. Agents asked for a “bank owned” button.  Agents asked for a “foreclosure” button. With REsearch 4.2, we’ve added these buttons, and — with the help of our Realtor BoD — provided “hover help” explaining each of the new buttons.

However, some agents are not being selective in using these buttons, and a few agents are checking all of the buttons. Please think carefully to determine which button should be checked. Here’s a brief primer:

A property goes into the foreclosure process (pre-foreclosure) — “legal action by lender to gain control of the property” — when legal action is filed by the lender. Once the lender files a public default notice, a lis pendens attaches to the property, and the property is “in (pre)foreclosure.”

The (pre)foreclosure process can end one of four ways:

  1. The owner reinstates the loan by-paying off the default amount during a state-law-defined period which is known as “pre-foreclosure.”
  2. The Borrower/owner sells the property to a third party during the pre-foreclosure period which allows settlement of the loan amounts.
  3. A third party buys the property at a public auction at the end of the pre-foreclosure period.
  4. The lender takes ownership of the property through either an agreement with the owner or by buying back the property at the public auction.  The property is then REO (real estate owned) by the lender.

Therefore:

  • A property can be either a (pre)foreclosure or an REO, not both.
  • A property could generate a “short” sale and be (pre)foreclosure.
  • A property could generate a “short” sale with no foreclosure action filed.

Please check only the appropriate boxes.