Foreclosures

Here are few things you should know…

An REO is real estate owned by the bank and many investors consider an REO property to be very lucrative investment opportunities. An REO is different from a foreclosure property in that the bank has already tried to sell the property at a foreclosure auction but was unsuccessful in obtaining the minimum price. Because the property did not sell through the bidding process the bank took back title and became the owner of the property. Naturally, the bank does not want to keep these properties any longer than possible so often times they make for a great buys for investors or consumers.   

Advantages of Buying Bank Owned Foreclosed Properties (REO'S)!

• All liens against the property are removed once it becomes an REO, and taxes are paid.
• Unlike properties at foreclosure auction, REOs can be inspected prior to contract, and are listed with real estate agents.
• While many foreclosures are often in deplorable condition, REOs are typically restored to at least a readily sellable condition by the lender.
• The bank or lending institution that owns the property will often offer financing with better deals then they would offer on traditional properties.
• The bank or lender that owns the property will often provide an allowance for certain repairs.
• You can save money in your title search if you use the same title company that the lender used during foreclosure. They will often discount the cost as much as 100%!
• REOs will often times include appliances
• While in hot markets, you may not see a difference in price between an REO and a typical property, during slower markets, you can purchase REOs at substantial discounts.