What is an REO? REO means Real Estate Owned. Everyone is talking about REOs these days. But before you consider buying one, there are a few things you should know about REOs. These properties are generally owned by banks, credit unions, mortgage companies and sometimes private companies.
It has become increasingly common for the news to report foreclosure issues and homeowners losing their houses and other effects of the mortgage crisis. As a result there have been dramatic increases in the marketing of REOs to the general public. It used to be that you could barely get your hands on lenders' foreclosure lists. But these days, everyone is trying to sell REOs.
It's good to purchase REO as they are priced lower than the market value. However, you need to work your way in order to get your hand on these properties and avail a much lower purchase price.
The REO owner is not allowed to make a profit after the foreclosure process. So buyers are more likely to get lower price during the pre-foreclosure stage.
Foreclosure is the process of the lender, may it be a bank or mortgage company, to sell the property in an auction known as Public Sale. And if the property does not sell during the process, the lender keep possession of the property.
After a property goes through this complex process it becomes a REO property. You can buy these REO properties from the bank. Since banks hates to holding properties because they are responsible for the taxes, they will more that likely love to sell a REO property to you.
REO properties are sold in "AS IS" basis and it's advisable to inspect the property before making the final offer. You need to get the services of a qualified home inspector who can assess the cost of repair needed for the property. You may use the assessment to backup your offer to the bank.
One way to purchase REO's is through private real estate investors. These people buy REO's at wholesale pricing and get's discount for doing so. These discounts can be passed on to you if you decide to purchase the property through them.
It has become increasingly common for the news to report foreclosure issues and homeowners losing their houses and other effects of the mortgage crisis. As a result there have been dramatic increases in the marketing of REOs to the general public. It used to be that you could barely get your hands on lenders' foreclosure lists. But these days, everyone is trying to sell REOs.
It's good to purchase REO as they are priced lower than the market value. However, you need to work your way in order to get your hand on these properties and avail a much lower purchase price.
The REO owner is not allowed to make a profit after the foreclosure process. So buyers are more likely to get lower price during the pre-foreclosure stage.
Foreclosure is the process of the lender, may it be a bank or mortgage company, to sell the property in an auction known as Public Sale. And if the property does not sell during the process, the lender keep possession of the property.
After a property goes through this complex process it becomes a REO property. You can buy these REO properties from the bank. Since banks hates to holding properties because they are responsible for the taxes, they will more that likely love to sell a REO property to you.
REO properties are sold in "AS IS" basis and it's advisable to inspect the property before making the final offer. You need to get the services of a qualified home inspector who can assess the cost of repair needed for the property. You may use the assessment to backup your offer to the bank.
One way to purchase REO's is through private real estate investors. These people buy REO's at wholesale pricing and get's discount for doing so. These discounts can be passed on to you if you decide to purchase the property through them.
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