This refers to an equity positioned owner who is 'willing and able' to repay any existing liabilities on the home (if applicable). The key advantage to a prospective purchaser is in the response time with the potential most offers being acknowledged and accepted on the the same day. The actual closing date is always negotiable but it is customary for a home in this position to close 5 – 30 days from the the offer date.
Short Sale:
A Short Sale is where the existing owner has liabilities that exceed the underlying property asset value. A seller can explore the option of a short sale with their lender(s) but have no guarantee that any offer will be accepted. Consequently a buyer has no guarantee (even with a full price offer) that this will proceed to closing. If an offer is lower than the comparative recent sales the lender will usually request that you either increase your offer or it will be declined. Short sales normally take around 60 – 180 days but in many cases will take much longer.
Bank Owned / REO: