There is a lot of interest in buying bank owned properties these days. A lot of information, some
good and some bad, is floating around about the subject. Often the information offered is for sale,
with the promise that you can make a lot of money with little effort once you know “the secret
formula”. The fact is that there are no secrets, and to make money does require effort.
What’s an REO?
REO stands for “Real Estate Owned”. These are properties that
have gone through auctions and are now owned by the bank or
mortgage company. This is not the same as a property up for
auction. When buying a property during an auction sale, you must
pay at least the loan balance plus any interest and other fees
accumulated during the process. You must also be prepared to pay
with cash in hand. And on top of all that, you’ll receive the property
100% “as is”. That could include existing liens and even current occupants that need to be
evicted. A REO, by contrast, is a much “cleaner” and attractive transaction. The REO property did
not find a buyer during auction. The bank now owns it. The bank will see to the removal of tax
liens, evict occupants if needed and generally prepare for the issuance of a title insurance policy to
the buyer at closing. Do be aware that REO’s may be exempt from normal disclosure
requirements of property defects. As your agent, I will be sure to provide you with a full disclosure,
so you know what you are getting.
Home Status Report
Want to know if a home is still on the market, or if the price has changed? We can help. Simply fill
out the information below and with no obligation to you we'll get back to you with your requested
information. We guarantee your privacy.
Why Do Sellers Go Into Foreclosure?
Sellers stop making payments for a host of reasons. Few choose to go into foreclosure voluntarily.
It's often an unpredictable result from one of the following:
¾ Laid-off, fired or quit job
¾ Inability to continue wor