REO vs Short Sale

A listing cannot be both a SHORT SALE and a REO property.

These are mutually exclusive fields.


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.

This agreement, however, does not necessarily release the borrower from the obligation to pay the remaining balance of the loan, known as the deficiency.

The Compensation Code field is not a required field however you can mark your listing as a Possible Short Sale by placing a “S” in this field.



IN A SHORT SALE SITUATION, THE LISTING MUST BE MARKED AS CTS WITHIN 48 HOURS OF THE BUYER AND SELLER REACHING A MEETING OF THE MINDS. APPROVAL OF THE BANK IS A CONTINGENCY OF THE TRANSACTION AND SHOULD NOT AFFECT WHEN THE LISTING IS REPORTED AS CTS!



Real estate owned or REO is a class of property owned by a lender, typically a bank, after an unsuccessful sale at a foreclosure auction.

As soon as the bank repossesses the property, it is listed on their books as REO – Real Estate Owned – and is categorized as an asset.

REO Property shall mean a property listed by a lender or the lender’s authorized representative.

This is a required field for SF, CN, MU, CI and LA property types.