What Is The Difference Between Resale And Foreclosure Homes

Posted In: Foreclosure Homes

Chester Topolinski says...

I think you may be thinking of short sale and not resale. Resale is most simply any home that is not new construction. If you are buying a home that someone has owned before (not a construction company) then it is resale. Even if the owner built it themselves and lived in it a year without ever selling it it is resale. Foreclosure, commonly called REO, Real estate owned or bank owned, generally take the same amount of time and paperwork as regular transactions but the banks often do not pay all of the sellers side closing costs and often sell As-Is.



Short sales are a totally different game. It is when the seller/owner owes more than the home will sell for. It is generally the same amount of paperwork but while while the buyer and seller agree on a price the lender must ultimately agree to the payout amount and may not allow the sale to proceed. A resale, new construction, or REO is generally 30 days or whatever is stated in the contract. Short sales can take much longer and I have heard some that have taken over six months just to get the bank to consider the price.

Posted on May 18, 2011