Bank Owned and Short Sale Properties

Each month we scan our current listings to give you a complete list of properties that are both bank owned and potential short sales.  We have included residential, land and commercial listings in the entire Yampa Valley Area, Routt County, CO.

Definitions of Bank Owned/Real Estate Owned/REO and Short Sale:

Real estate owned or REO is a class of property owned by a lender typically a bank, government agency, or governmental loan insurer, after an unsuccessful sale at foreclosure auction.  A foreclosing beneficiary will typically set the opening bid at a foreclosure auction for at least the outstanding loan amount.  If there are no bidders that are interested, then the beneficiary will legally repossess the property.  This is commonly the case when the amount owed on the home is higher than the current market value of this foreclosure property, such as with a high loan-to-value mortgage following a real estate bubble.  As soon as the beneficiary repossess the property it is listed on their books as REO and categorized as an asset.

A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property's loan.  It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the borrower.  Both parties consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty feeds for the bank and poorer credit report outcomes for the borrowers.  This agreement, however, does not necessarily release the borrower from the obligation to pay the remaining balance of the loan, known as the deficiency.

If you would like this list emailed to you each month, send us a note at or call us at 970-870-8800.

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