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Definition: Non-REO Foreclosure
Non Reo Foreclosure is a property whose foreclosure is done completed properly. A property owner is changed over a period of repayment for number of times. Hence, it becomes to cross check all the dues of previous owner. A property is called Non-reo foreclosure when the present owner has successful found buyer who is willing to pay all the incomplete previous dues to lender. There is also a possibility that the purchaser will get deal at a relative lower price.
There is also a risk that the present tenants is not willing to evacuate it. Most of the properties involved in a non reo foreclosure are bank’s mortgage whose payments have stopped coming. REO stands for Real Estate Owned.
There are different types of foreclosure. These are Judicial, Non Judicial and Strict. Judicial Foreclosure involves the mortgage property sale. The proceeds generated will go to Mortgage, Lien holders and borrowers in a sequence. In this foreclosure lender files the case against the Borrowers in a court of law. If the supervision of court is not required for mortgage selling then it is called Non Judicial Foreclosure.
Most of the time, Non Judicial foreclosure requires clause of “deeds of trust” in an agreement between Borrower and lender. Generally it is faster than judicial foreclosure. In strict foreclosure, the lender will get the ownership of property with no obligation to resale it. Here, the borrower is given a period of time to repay his/her obligations.