DEFINITION of 'Non-REO Foreclosure'

A real estate property that has been foreclosed successfully. A non-REO (real estate owned) foreclosure has a purchaser that is willing to pay the amount owed to the bank for the property, or less if the bank is willing.

A non-REO foreclosure is different from an REO foreclosure, where a buyer could not be found and the lender takes possession, because the property never becomes real-estate owned (i.e., lender owned).

BREAKING DOWN 'Non-REO Foreclosure'

Most real estate agents will say that there is a lot more risk in purchasing a non-REO foreclosure. This is due to the fact that there might be liens and other expenses still attached to the home, and even worse, the new owner may have disgruntled tenants to evict.

RELATED TERMS
  1. Foreclosure Filing

    The initial legal process of selling a mortgaged property that ...
  2. Foreclosure Action

    The legal proceedings initiated by a lender in the case of mortgage ...
  3. Voluntary Foreclosure

    A voluntary foreclosure is a foreclosure proceeding that is initiated ...
  4. Judicial Foreclosure

    Foreclosure proceedings in which a mortgage lacks the power of ...
  5. Foreclosure Crisis

    A period of unusually high home foreclosure rates that caused ...
  6. Zombie Title

    A right to ownership and possession of a home that remains with ...
Related Articles
  1. Investing

    Helping Clients Navigate Short Sales And Foreclosures

    Both buyers and sellers can benefit from a real estate professional experienced in dealing with short sales and foreclosures.
  2. Managing Wealth

    Investing In Foreclosures Not A Get-Rich-Quick Venture

    Investing in this kind of real estate takes capital, time and careful planning.
  3. Investing

    Don't Get Trapped in a Zombie Foreclosure

    Understand how foreclosures work and you can avoid the disastrous consequences of having a zombie foreclosure.
  4. Investing

    The Pitfalls of Buying a Foreclosure House

    Find out if the house you're eyeing is really a good deal.
  5. Investing

    Avoiding Foreclosure Scams

    If you want to save your home, avoid bogus offers and take matters into your own hands.
  6. Investing

    What Is A Short-Sale Property & How Does It Work?

    A short sale is an alternative to foreclosure whereby indebted owners get permission from a bank to sell their house for less than amount of the mortgage.
  7. Investing

    The Lowest Foreclosure Rates In America

    Despite more foreclosures and a high unemployment rate, signs of life are emerging in the U.S. real estate market.
  8. Investing

    Saving Your Home From Foreclosure

    Learn the tactics you can use to prevent your home from being repossessed.
  9. Investing

    Buy Your Next Home From Uncle Sam

    As a result of rising foreclosures, some Americans will buy their next home from the U.S. government.
  10. Investing

    The Best States for Buying Foreclosed Houses

    If you want a good deal, look at states with the most-favorable-to-buyers foreclosure laws.
RELATED FAQS
  1. How Many Mortgage Payments Can I miss Before Foreclosure?

    The status of your lender and the condition of your local housing market are some of the factors that determine how many ... Read Answer >>
  2. My mortgage payments are no longer affordable; is there anything that I can do to ...

    The most important thing for you to remember if you find that you may not be able to make this month's mortgage payment is ... Read Answer >>
  3. How can I make equity investments in real estate?

    Invest in real estate equity through buying and selling real property or through other more liquid investments like real ... Read Answer >>
Hot Definitions
  1. Two And Twenty

    A type of compensation structure that hedge fund managers typically employ in which part of compensation is performance based. ...
  2. Market Capitalization

    The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying ...
  3. Expense Ratio

    A measure of what it costs an investment company to operate a mutual fund. An expense ratio is determined through an annual ...
  4. Mezzanine Financing

    A hybrid of debt and equity financing that is typically used to finance the expansion of existing companies. Mezzanine financing ...
  5. Long Run

    A period of time in which all factors of production and costs are variable. In the long run, firms are able to adjust all ...
  6. Quasi Contract

    A legal agreement created by the courts between two parties who did not have a previous obligation to each other. A normal ...
Trading Center