Pagosa Source – Pagosa Springs Real Estate
Harold Kelley Loher Suellen Mike Heraty Lauri Heraty Robin Curvey

Understanding the Difference

We've listed some terms to help you understand the differences in some of the terminology used in the Pagosa Springs Foreclosure market.

Foreclosure (or REO)
A home that has been taken back by the mortgage lender because the owner didn't keep up the mortgage payments. The lender is now the owner of the home and is now selling the home, usually for the balance due. REO is another term used by lenders. See below for the definition.

NED (Notice of Election and Demand)
The formal document that is issued to the Public Trustee by the lender to formally start the foreclosure action on a home. The Public Trustee then publishes this in the newspaper and starts the foreclosure procedure.

Pre-Foreclosure
A home that may go into foreclosure because the owner is behind on the mortgage payments.
A pre-foreclosure may or may not also be a short sale.

REO
A term used by mortgage lenders to describe foreclosures. It means "Real Estate Owned" (by the lender).

Short Sale
A home that is being listed and sold, with the lender's permission, for less than the homeowner owes on the loan.
A short sale property can take up to 3 months to get final acceptance and approval by the lender although in the past several months, lenders are certainly striving to push this process along quicker.


Approved Short Sale
If the lender has agreed to accept a certain lower amount as payment in full, the short sale is "approved".
That doesn't mean the lender will accept any offer. It only means they have agreed to accept the current listing price of the home.

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