The word
Foreclosure may mean different things to different people. Often agents will refer to home called Foreclosure when it's actually
REO (Bank owned property).
Foreclosure is actually happens
on the steps of the court house and once the bank buys the property back (90% of cases) the property is no longer Foreclosure. BUT having said that, MLS system will still identify these properties as Foreclosure, so in 90% cases when you see Foreclosure pulled from MLS system - it is really an REO.
Foreclosure on MLS = REO or Bank/Lender Owned Property.
Other sites will pull information from public records (bank must post a public notice of upcoming foreclosure 21 days before the auction) and will actually post properties that are not yet on the market and not yet sold on the auction - those are TRUE Foreclosures.
In my blog and on my sites - because the information comes from the active real estate market - the properties that are called Foreclosures are actually REOs.
