What do banks do with REO properties?
A bank-owned or real estate owned (REO) property is one that has reverted to the mortgage lender after the home fails to sell in a foreclosure auction. Once the bank owns the property, it will handle eviction (if necessary), pay off tax liens and may do some repairs.
How can I buy a REO house?
How to Buy an REO Property
- Get Pre-approved for Financing.
- Find REO Properties.
- Consider Hiring a Buyer’s Agent.
- Make an Offer.
- Get a Home Inspection.
- Perform a Title Search.
- Pros of REO Properties.
- Cons of REO Properties.
What does an REO on a lender’s assets mean?
Real estate owned
Real estate owned (REO) is property owned by a lender, such as a bank, that has not been successfully sold at a foreclosure auction.
Can you negotiate a foreclosure price?
Banks are willing to negotiate foreclosures because they are losing money on the property when it sits vacant. Banks can negotiate directly with buyers without the assistance of a real estate agent. Because they own the property, banks can set the price for any value they deem acceptable.
How to find REO properties?
The easiest and most traditional method for finding REO properties is to simply search one of the many public-access sources of REO listings. This includes: Public Records: Any time a home goes to foreclosure a notice must be recorded with the County Clerk. As the name suggests, these records are public and available for anyone to view.
What is a government foreclosure?
Government foreclosures are residential properties that have been repossessed and put up for sale by a government agency.
What is a foreclosure listing?
A foreclosure listing is a resource used by investors or purchasers of real estate property to evaluate a comprehensive list of foreclosed homes/properties by location and/or price.