Distressed Properties With the Moratorium on Payments coming to a close, you'll be hearing more about bank-owned, foreclosed, and short-sale homes. Real estate can seem scary considering the current economy. But what exactly do all those varying degrees of scary mean? Each type of property sale and transfer of ownership is based on different circumstances and means different things for the lender, the seller and the buyer.   The short sale of a property is intended to prevent foreclosure and bank ownership in the first place. A short sale occurs because the amount the owner owes on the house outweighs the house’s value. This can happen for several reasons. If the owner has defaulted on th…