Shadow inventory is a newer concept – a product of the recent financial crisis and housing crash. It’s a concept we all (in the real estate industry) have had to learn and understand. It actually affects everyone, because the shadow inventory will play a big role in the housing recovery. Depending on how the shadow inventory is handled will determine how quickly (or not) the housing market will rebound. Watch and see what all the fuss is about.
R.E.O. is an acronym for “Real Estate Owned” and refers to when a bank takes possession of a property after foreclosure. That’s the simple definition. Watch the video to see how a property goes from pre-foreclosure to foreclosure to REO.
I have so many clients and people telling me that they want to buy short sales and REO properties, because they want a “deal.” And I get that. Everyone wants a deal. But as I learned in ECON 101, there is no such thing as a free lunch. And the same holds true for these distressed properties. This video explains how the purchase process is different with short sales and REOs, and why it is important to know what to expect before writing offers on these types of properties.
Here is my first run of Khan Academy style educational videos for real estate. This video explains the basics of a short sale.