What is the difference between a foreclosure sale and a bank owned property sale?
A foreclosure sale is actually the auction of a property where the borrower has not fulfilled the obligation of loan repayment. These auctions will typically take place on the steps of the County Courthouse in the county the property is located. Date and time of sale will be advertised, prior to sale, in a local newspaper. The sale will start with a minimum bid. If you have the successful bid, you will have to pay for the property that day. You will get the property in as-is condition, and the possibility that someone may still be living there.
A bank owned property sale (REO-real estate owned)is property that goes back to the bank after an unsuccessful foreclosure auction. REO properties are bank owned and the mortgage loan no longer exists. The bank will handle evictions, and occasionally do repairs. They will negotiate IRS liens and homeowners association dues and will typically list the property with a real estate company.
Regardless of the type of sale, it is very important that you always do your research and employ the services of a local real estate professional for guidance.