DEFINING OPPORTUNITIES FOR BUYERS

NORTHBROOK, Ill. (September 14, 2009) - As the economy finds its footing and home foreclosure rates continue to rise, an opening exists on a wide selection of homes and values that weren't available to buyers before. But understanding the difference between REO or short sale and what it means for your housing aspirations is a challenge buyers shouldn't tackle on their own.
            "The role of a Realtor as a counselor has expanded as buyers and sellers face options they never may have heard of before today," said Fran Broude, president and COO of Coldwell Banker Residential Brokerage. "It's an opportunistic time for buyers willing to investigate nontraditional housing prospects, but they need help navigating these often complicated waters."

Buyers looking for a new opportunity should review this list of simple definitions to get a smart start:

·         Foreclosure: Similar in scope to repossession, foreclosure means that the owner defaulted on the loan forcing the lender to step in and reclaim the home.

·         Bank Owned Properties. Called Real Estate Owned (REO), these properties are owned by a local bank or national servicer. In this scenario, negotiations take place between the buyer and bank as opposed to the homeowner, which creates a more time-consuming process. Being represented by a Realtor is a must.

·         Short Sales: When a property is owned by an individual in a negative equity situation (the sales price is less than what is owed on the property), it's referred to as a short sale. In this case, the lender's approval plays a role in the sale.

·         Real Estate Auction: A real estate auction is an innovative method of selling real estate that involves the public sale of a property through open, competitive bidding. Any property can be sold in an auction format, not just those in foreclosure.

Coldwell Banker Residential Brokerage, a leading residential real estate brokerage company serving Chicagoland, Northwest Indiana, Southeast Wisconsin and Southwest Michigan, operates 58 offices with more than 3,800 sales associates. Coldwell Banker

Residential Brokerage is part of NRT LLC, the nation's largest residential real estate brokerage company. NRT, a subsidiary of Realogy Corporation, operates Realogy's company-owned real estate brokerage offices. For more information, please visit www.coldwellbankeronline.com.