Milford Foreclosures

Bank Owned Properties

Have you ever noticed a real estate listing advertising an "REO" home for sale? Sometimes investors and home seekers focus their interest on this category of real estate. The abbreviation "REO" stands for "real estate owned." It describes properties which have entered the asset inventories of banks and other mortgage lenders.

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These types of homes may include houses, condos, townhomes, mobile homes, vacation cottages, lots, and apartment buildings. Frequently, financial institutions acquire REOs following foreclosure proceedings. In other situations, homeowners surrender their realty to the bank voluntarily in anticipation of a pending foreclosure. The completion of a reverse mortgage may also result in a bank receiving legal title to a residence.

Many banks prefer to reduce their REO inventories frequently by conducting rapid property sales. These types of homes may sell very quickly in some locations. While exceptions occur, some banks prefer to market their REOs on an "as is" basis. The bank may not possess familiarity with the real estate or the condition of its systems (these important features of a property include flooring, roofing, cooling and heating systems, plumbing, the foundation and electrical wiring).

Financial institutions often hire property management firms to assist them in inspecting homes classified as REOs. These services differ widely in the extent to which they perform repairs and maintenance. Particularly in rural locations, a bank may hesitate to spend a lot of money preparing an REO property for sale. Investors and home seekers sometimes obtain attractive values when they purchase bank owned properties intelligently.

Short Sales

Short sales result when a homeowner cannot sell a property for a price sufficient to satisfy debt secured by the property. Today many banks cannot approve short sales, and they may require the seller to pay off the mortgage in order to complete a sale of the real estate. People contemplating possible short sales transactions should consider seeking the advice of a capable Massachusetts real estate attorney. These transactions frequently involve high levels of financial and legal risk.

A variety of factors may produce short sales situations. Sometimes sellers have accrued high levels of mortgage debt and home equity lines of credit. Lending institutions differ in their willingness to accept real estate as security for loans; some lenders will assume a higher degree of risk than others.

The condition of the real estate market may also impact short sales. While home values often rise, they also sometimes fall. For example, during the recession of 2007 to 2009, the value of homes tumbled in some parts of the United States. These losses came as a shock to many homeowners and their lenders.

Unanticipated changes in the property itself may also underlie a short sale. For instance, if a lightning strike destroys all the wiring in a residence and the homeowner cannot afford to repair the damage, the value of the home typically decreases. While these types of events may not severely impact home sellers with high levels of equity in the residence, they may cause property owners with low levels of equity to encounter a higher risk that the property cannot sell for an amount sufficient to satisfy its mortgage debt.

About Milford

This community lies in far eastern Worcester County. The town has experienced rapid growth during recent years, and now reportedly approaches 30,000 inhabitants. It sits in a strategic location just a few miles southeast of the important Interstate 90 and Interstate 495 interchange. Residents commute easily into Worcester (approximately 30 miles), Boston (approximately 40 miles), or Providence, Rhode Island (approximately 25 miles).

The surrounding area supplies some popular recreational attractions. Upton State Forest and Whitehall State Park attract visitors to this part of Massachusetts. The Providence River flows near the town before eventually emptying into Providence Bay many miles to the south.

This community includes many lovely homes. Residential properties here often supply generously sized lots and mature landscaping. From time to time, REOs become available in this location.

If you'd like to search for bank owned properties here, you may find it helpful to contact Boston City Properties. We follow real estate trends and prices within the Greater Boston Metropolitan Area and its environs with great interest. We'll gladly notify you if we discover an REO offered for sale in Milford which might meet your requirements.

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