REO? Foreclosure and auctions...

No one?

foreclosure: when a creditor takes possession of a real property due to nonpayment of a loan. It is a long process in New York state, and co-ops do not show up in the figures until after the final judgment. Akin to execution of a debt.

short-sale: when the bank accepts less then the amount owed to settle a mortgage debt.

auctions: pretty obvious, that.

REO sales: sales of Real-Estate Owned, sometimes known as OREO's (Other Real Estate Owned), which is, in fact, property to which the bank has title. In an normal market the bank lists the property with a real estate agent and attempts to get market value for it. With the current flood on the market, they'll likely recur to auctions.

Good definitions above from stevejhx. I would just add that, from a buyer's perspective, none of these situations is likely to make a huge difference in outcome.

A short sale, for example, is relevant to the buyer only in the sense that the noteholder (generally a beleaguered securitization trust these days) has to approve the price along with the seller. A short sale doesn't necessarily mean a good deal; it just means the seller is underwater, and the seller and lender are willing to share the pain.

REO can often be had at attractive prices, but REO properties also tend to have a lot of deferred maintenance. And since other for-sale properties have to compete with REO listings, the spread between them isn't normally too big.

Thank you for all the info!

Some follow-up questions -- what about public administrator auctions? The prices don't seem to be *that* much below market rate -- what gives, if the home is a home with no mortgage, most of the auction price is profit for the city (they are estate sales)?

Anyone have any experience buying a property at a Public Administrator auction in NYC?

West181st -- It wouldn't seem like there would be much benefit if the REO's price is close to a property with no extra upkeep needed.

Started a new thread re: public administrator auctions -- http://www.streeteasy.com/nyc/talk/discussion/5732-public-administrator