What is the difference between a "Short Sale" and a "Bank Owned" home?
Buyers Answers

A short sale is a home in which the potential seller owes more than the home is worth. The home's lender will have to agree to forgive some of the home loan for the home to close escrow.

A Bank Owned home is a property which has been foreclosed upon by the bank. The seller is no longer involved in the property and all negotiations are directly with the bank.