房产交易的全频谱介绍

some people here still have questions about foreclosure, REO, ..., I would like to introduce those concepts based on my own experience.

a property, say a home, can be sold regularly, either (1) through a realtor agency or (2) sale by owner. Obviously, sale by owner should give both seller and buyer more benefits, but a little bit higher risk. From this simple illustration, you should understand that bigger profit always goes with bigger risk.

I will use "branching" this logic concept to introduce the whole spectrum.

(a) Anytime, you (assume you are the home owner) have 2 options: pay your mortgage and taxes; or don't pay them.

(b) If you always pay your mortgage and taxes, you can sale the property either (1) through a realtor agency or (2) sale by owner.

(c) If you don't pay your mortgage or taxes, now here are several milestones: if mortgage payment is 30 days late, then the property becomes (3) distressed home.

(d) Then the property becomes the distressed, you have 2 options: pay again plus penalties; or still don't pay anything.

(e) If you back to track to pay regularly, you return to (a)

(f) if you still not pay, then your lender or tax collector will send you a formal notice to initialize the foreclosure process. From this time to the foreclosure sale, is called pre-foreclosure by generalized definition.

(g) in the meantime, you can negotiate with the lender to start short sale

(h) if short sale succeeds, then the property is transferred.

(i) if short sale fails, there is another chance for investors to transfer the property right before foreclosure, I would like to call it specialized pre-foreclosure sale.

(j) if property still fails in pre-foreclosure, then it's time for the foreclosure. This is the most risky transfer, but could also be the most profitable one.

(k) if the property fails in foreclosure, then the lender has it back,

(l) after lender wins the bid in the auction, actually it may not be counted as a win. Then investors can also buy it from the bank, I would like to call it after foreclosure.

(m) since the foreclosure is involuntary alienation, therefore there is typically but not necessary a redemption period for the owner. So the property could go back to the original owner

(n) if it fails in redemption, there could be a need to go to prothonotary court to fight other lien holders and face more involuntary auctions.

(o) if still fails, then it becomes the REO, or called bank owned. It will be back to the public market for most people grab.

(p) if it fails, then the bank will have a voluntary auction to sell the property immediately, please keep in mind, banks (actually its shareholders) cannot tolerate the REO as a failure in their balance sheet very long.

(q) if it still fails to sell in the bank’s auction, the bank could just give it up, without paying the tax anymore, then it’s back to tax sale

(r) if it fails again in tax sale which means none wants to pay the must paid tax to get the property, then your home finally becomes government’s property.

Overall, foreclosure is like a lion catching a zebra, it’s good because a live zebra tastes fresh, but lion is also takes risk. REO is like hyena waiting for lions’ leftovers. Hyena eats zebra’s corpse, which may not taste fresh, but hyena doesn’t risk much.

所有跟帖： 

• 大顶！值得珍藏的好贴！谢谢槑。（你这名咋读？） -万枫- ♂ (0 bytes) () 06/24/2009 postreply 12:23:49

• 谢谢。槑,古体“梅花”音同“梅：méi”，象形字，两朵梅花而已。和“呆”没有关系槑 -槑- ♀ (79 bytes) () 06/24/2009 postreply 12:34:12

• 啊，原来是两朵梅花，幸亏你解释了，我一直私下里读：“二呆“，汗颜 -万枫- ♂ (0 bytes) () 06/24/2009 postreply 12:38:56

• HA,HAHA......... -hc29- ♀ (0 bytes) () 06/24/2009 postreply 18:47:48

• 回复：啊，原来是两朵梅花，幸亏你解释了，我一直私下里读：“二呆“，汗颜 -怀着我的梦想- ♀ (67 bytes) () 06/25/2009 postreply 09:56:36

• haha, me too:) I always thought it is 呆x2 -jy101- ♂ (0 bytes) () 06/24/2009 postreply 12:41:04

• haha, 全在约定俗成。万枫, jy101,你们的理解其实更popular -槑- ♀ (0 bytes) () 06/24/2009 postreply 12:50:23

• 看你的博克，要么智力测试，要么数学公式，原来聪明人才说自己傻 -万枫- ♂ (0 bytes) () 06/24/2009 postreply 13:42:42

• 我觉得 呆的2次方比较酷 -比花花还花- ♂ (0 bytes) () 06/24/2009 postreply 23:21:56

• Very clear. Thanks! -ChongqingChina- ♀ (0 bytes) () 06/24/2009 postreply 12:38:12

• 真好，好帖。有几个问题问一下： -抬灯- ♀ (1685 bytes) () 06/24/2009 postreply 12:43:07

• jy101 is here, he knows much more than me -槑- ♀ (0 bytes) () 06/24/2009 postreply 12:50:56

• 谢谢，jy101，能不能帮我解答一下，谢谢。我比较苯！ -抬灯- ♀ (0 bytes) () 06/24/2009 postreply 12:55:07

• 回复：真好，好帖。有几个问题问一下： -槑- ♀ (1352 bytes) () 06/24/2009 postreply 13:01:01

• 谢谢，这下我算摸着点头脑了，非常感谢槑 ！ -抬灯- ♀ (0 bytes) () 06/24/2009 postreply 13:11:04

• 要是在我们州，可能有不同的答案，所以各州的差别还是满大 -如山- ♂ (14 bytes) () 06/24/2009 postreply 14:19:17

• agree, diferent state have their own set of procedure, please ca -jy101- ♂ (0 bytes) () 06/24/2009 postreply 14:34:22

• 强顶! 不可多得的科普的, 谢谢! -美西游子- ♀ (0 bytes) () 06/24/2009 postreply 13:11:25

• 顶！非常好！只是有一点想说：不知道你说的是否Deed of -如山- ♂ (121 bytes) () 06/24/2009 postreply 14:10:01

• 投坛真好！各种问题都能得到专家和资深投资者的详尽回答和补遗。 -万枫- ♂ (0 bytes) () 06/24/2009 postreply 14:27:33

• good post, just one thing I like to add.. -jy101- ♂ (1724 bytes) () 06/24/2009 postreply 14:33:13

• Ask pro: how do you distinguish who is foreclosing the house? -田甜- ♀ (56 bytes) () 06/24/2009 postreply 15:12:43

• title search, you can get copies of lien file at county recorder -jy101- ♂ (45 bytes) () 06/24/2009 postreply 16:42:16

• Is "copies of lien file" different from "preliminary title repor -田甜- ♀ (70 bytes) () 06/24/2009 postreply 23:06:28

• 谢谢好贴！我们就象hyena waiting for the leftover ... -金色风铃- ♀ (106 bytes) () 06/24/2009 postreply 14:47:24

• 有现金的华人致富就靠它(j)了! Question about(j): -田甜- ♀ (673 bytes) () 06/24/2009 postreply 15:00:50

• if you bought a 2nd position lien, meaning you are 2nd in line -jy101- ♂ (88 bytes) () 06/24/2009 postreply 16:44:33

• 二呆的帖都营养丰富，大顶 -围观生活- ♂ (25 bytes) () 06/24/2009 postreply 15:16:09

• CO：二呆的帖都营养丰富，大顶 -daxia- ♀ (0 bytes) () 06/24/2009 postreply 16:39:41

• 围观生活这名字咱记得，你的离婚系列出书了吗，绝对畅销 -万枫- ♂ (0 bytes) () 06/24/2009 postreply 20:07:34

• 谢谢分享，顶！ -lkk1080- ♂ (0 bytes) () 06/26/2009 postreply 05:19:07