Upcoming Foreclosures

When an ad for a home says "bank owned", does that mean its a "short sale" or "foreclosure"?

What is the difference between the two? 10 points best answer. Thank you! :)

Public Comments

1. Short sale was arranged to transfer property and proceedes paid off mortgage in full no matter what amount was actually due Foreclosure was taken back by the bank and resold subject to outstanding liens and their satisfactions (or not)
2. bank owned is foreclosed property. Short sale is one sold under what is owed and the seller pays taxes on the difference to the IRS on what the bank looses. The bank must approve a short sale as they want to be made whole so they investigate the sellers as to whether or not they can pay the balance from another source before they grant such a loss
3. Bank owned (REO) means forclosure has been completed and the mortgagee (lender) owns the property. All liens were eliminated by foreclosure. The bank owns the property free and clear. A short sale is where the mortgagor (borrower) sells the poperty for less than the mortgage balance, with the mortgagee's approval. realtor.sailor
4. "Bank owned" means "foreclosure." What happened is that the bank foreclosed on the property. Now it owns the property. In a short sale, the individual, the initial owner, still owns the property. He's trying to sell it for less than he owes the bank. If he gets an offer, it must be approved by the bank before the sale can occur.