Foreclosures, Short Sale, and Bank Owned properties.

Do know the differences?

All term we are hearing about the current Idaho real estate market. We here the terms  Foreclosures, Short Sales, and Bank Owned properties, but understand the difference between them all is very important to you the Idaho home buyer. There are great buys available here in the south west Idaho area and we currently have the best Buyers Market that the real estate industry has seen in years, but as always let the buyer beware and informed!  

Property in Foreclosures:

A property in foreclosure is one where the owner is behind on their payments and the bank has issued a Notice of Default  and scheduled a date for a Trustees Sale.  During the time between the issue of the Notice of Default, and the trustee's sale, the homeowner can sell their home to pay off the loan, or take other measures to avoid the foreclosure.  At the Trustees Sale, the home is sold in a bidding environment, and the purchaser must pay for the home in cash or cash equivalent at the time of the sale.  There would be no time available to arrange for financing.  Another caveat to buying a foreclosure is that you also may be "buying" other liens or loans, so you need to take great care to know exactly what you are purchasing.  Many properties listed on the foreclosure list are listed for the 2nd or 3rd mortgages.  If you were to purchase a second loan on a property, you would still be liable to make the 1st mortgage payments against the home.  You also are liable to pay any tax and other liens as well.