Here is a quote from RSImedia.com.
The stages of the foreclosure process include:
- Stage 1 Pre-foreclosure filing: The initial notice that the property is now in foreclosure for an unpaid secured lien or loan.
- Stage 2 Auction filing: The notice that the public court house auction sale date has been set because the unpaid secured lien or loan remains unpaid. Some states, like Arizona, combine Stage 1 & 2 into one notice, and are reported Stage 2 only.
- Stage 3 REO (real-estate/bank owned) filing: The notice that the foreclosure has gone to auction and the property has transferred to the winning bidder or reverted to the lender. The home owner has lost their house to foreclosure.
Recently when speaking with a few Real Estate agents. I realize some do not remember the 90s when it seemed everyone knew what an REO was. Perhaps the crisis will not be over till everyone one knows what an REO is again.
Of course if the banks are smart instead of foreclosing in places like Sarasota and San Diego they will encourage short sales.