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WHAT IS A BANK OWNED FORECLOSURE?
The best way to describe a Bank Owned Foreclosure is a property for which the bank has finalized the foreclosure process. The bank is now offering the property for sale because the bank owns it.
WHY SHOULD YOU CONSIDER A FORECLOSURE?
Most of the time a foreclosure is priced under Market Value. You will still be able to make offers (possibly lower) on that property. Therefore, you will be getting a terrific deal on the property.
WHAT IS THE DIFFERENCE BETWEEN "SHORT SALE" & "FORECLOSURE"?
A "Short Sale" is a property being offered for a price below the amount of money that would cover the existing mortgage(s).
One of the reasons for a "Short Sale" is that the property has lost value since the time of purchase. Oftentimes the owner had a loan that increased faster than their income. The current market prices have created an upside-down situation which requires the property to be sold at a lesser value, hence "Short Sale." The difference between a "Short Sale" & "Bank Owned Foreclosure" is that in a Short Sale, the owner submits the offer to the seller for a signature on the contract, and then the acceptance comes from the bank. A "Foreclosure" has already gone through the process, and the bank is the owner and the entity that accepts the offers.