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.
News and reports about foreclosed properties are becoming common nowadays and the opportunity to market REO are increasing dramatically. Almost everyone is trying to get their hand on an REO and tries selling them.
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.
It's more likely for a buyer of REO property to get a lower price during pre-foreclosure or auction stage. After the foreclosure process, the REO owner is not allowed to make a profit.
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 the foreclosure process, the property becomes an REO and the lender, mostly banks, take hold of this. Since banks are not in the business of selling properties, they would likely want to sell the property a lot sooner.
REOs are sold AS-IS. This means that what you see is what you get. You will need a qualified home inspector to guide you with this step of your REO purchase process. Only a qualified inspector will be able to reveal latent flaws or issues that you will need to consider before you purchase the REO. You will need to factor in the costs of potentially repairing, replacing or rehabilitating the necessary sections of the property into the price you will be paying.
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.
News and reports about foreclosed properties are becoming common nowadays and the opportunity to market REO are increasing dramatically. Almost everyone is trying to get their hand on an REO and tries selling them.
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.
It's more likely for a buyer of REO property to get a lower price during pre-foreclosure or auction stage. After the foreclosure process, the REO owner is not allowed to make a profit.
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 the foreclosure process, the property becomes an REO and the lender, mostly banks, take hold of this. Since banks are not in the business of selling properties, they would likely want to sell the property a lot sooner.
REOs are sold AS-IS. This means that what you see is what you get. You will need a qualified home inspector to guide you with this step of your REO purchase process. Only a qualified inspector will be able to reveal latent flaws or issues that you will need to consider before you purchase the REO. You will need to factor in the costs of potentially repairing, replacing or rehabilitating the necessary sections of the property into the price you will be paying.
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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