REO Property

What is an REO Property.
Real estate owned or REO Property is a class of property owned by a lender. REO Property, typically a bank, after an unsuccessful sale at a foreclosure auction the property becomes an REO Property. REO Property. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank. REO Property. The minimum bid in most foreclosure auctions equals the outstanding loan amount. REO Property. The accrued interest and any costs associated with the foreclosure sale including attorneys' fees. REO Property.

After an unsuccessful auction, the bank will go through the process of trying to sell the property on its own. REO Property. It will remove some of the liens and other expenses on the home and try to resell it to the public, either through future auctions or direct marketing through a Realtor. Generally speaking, bank REO Properties are in poor shape in terms of repairs and maintenance; however, real estate investors will often go after REO Property as banks are not in the business of owning homes REO Property. And so, in some cases, the low price can more than compensate for the condition of the property. REO Property.

Once a property is REO Property, the bank or lender will try to get rid of the REO Property by either selling it directly themselves or through an established broker. Many larger banks such as Bank of America and Wells Fargo have REO Property/asset management departments that will field bids for the REO Property and offers, oversee upkeep and handle sales.

Stephen Johnson
999-328-7880
REO Property Specialist