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The property I was looking at is bank-owned but not a foreclosure. Is this considered an REO then? It's not labeled as such though.
If it's bank owned, does that necessarily mean it's a foreclosure or not always?
Highest and best offer takes it, so I'm assuming it's a form of auction without an auction house involved (no auction fees, etc.).
If the bank owns the house, title was most likely acquired by foreclosing on the mortgage...so it's no longer in foreclosure, it's already foreclosed upon. It would be considered an REO, labeled or not.
Highest and best offer usually is the offer accepted in all cases. That doesn't mean it's sold through an auction.
what jackmichigan said makes sense but i'm not sure that's really what went down. I looked at the tax and assessment info. and the transfer from former owner to bank was from October of last year and the house was put in the market this month. It couldn't have been a foreclosure. I looked at the name of the current title holder/owner:
WILMINGTON SAVINGS FUND SOCIETY FSB TRUSTEE
Is this a bank or a trustee?
From what I understand if people die off and have no one else to claim their possessions as a next of kin, it goes to a trustee? Is this what happened here?
what jackmichigan said makes sense but i'm not sure that's really what went down. I looked at the tax and assessment info. and the transfer from former owner to bank was from October of last year and the house was put in the market this month. It couldn't have been a foreclosure. I looked at the name of the current title holder/owner:
WILMINGTON SAVINGS FUND SOCIETY FSB TRUSTEE
Is this a bank or a trustee?
What is the basis for your conclusion that it couldn't have been a foreclosure? On the contrary, if title was transferred from the former owner to the bank last October, it most likely was a foreclosure.
Wilmington Savings Fund Society also goes by the name WSFS Bank. "FSB" is short for "federal savings bank".
I'd like to provide a little clarification if this thread is still being viewed......
1) It wouldn't exactly be a bidding war. However, if 2 or more people put in offers using different realtors, the one with the lower bid would of course go back to his customer and inform him/her/them they were outbid. They of course can then choose to up their bid. Also, even if a bid is accepted, if that customer doesn't pay for "due diligence" (this is money to have the property taken off the market while the customer has inspections done), another offer can still come in.
2) A property owned by the bank is an REO. It is not always a foreclosure quote unquote. A foreclosure goes on your credit and looks bad for a number of years. Borrowers can due a "deed-in-lieu". This mean giving title back to the lender instead of going through a foreclosure. Why? For example, you have a job making great money, discover your boss is Bernie Madoff and now you're out of work. You're having trouble getting another job and can't pay your mortgage. The bank sees you can't make payments and it isn't just because you're a bum spending money on booze and clothes instead of paying your obligations. Thus, they allow you to do a deed-in-lieu of foreclosure. You know you can't pay and so does the bank. You saving them the expense of the foreclosure process is what the bank gets out of it. Turn over the keys and walk away without a foreclosure on your credit. Both sides win and lose.
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