Definition of Non-REO foreclosure:
A type of property in which the foreclosure process has been successfully completed. This type of property is purchased by a buyer who is willing and able to pay the amount that is owed by the original purchaser to the lender. The purchaser may also be able to negotiate a lesser price for the property provided that the lender is willing to agree to this.
A non-real estate owned foreclosure, or non-REO foreclosure, refers to a successful foreclosure on a real estate property. In a non-REO foreclosure, when the property in foreclosure is put up for auction, a purchaser agrees to pay the amount owed to the bank for the property, or less if the bank is willing to offer a discount. .
The foreclosure process starts after a borrower fails to make mortgage payments for several months, a time period defined within the terms of the mortgage. To avoid foreclosure, the homeowner may put the property on the market via a real estate short sale.
Meaning of Non-REO foreclosure & Non-REO foreclosure Definition