REO - Real Estate Owned

REO – Real Estate Owned Property

When talking about REO’s, a lot of people think of REO Speed Wagon and their popular song, “I can’t fight this feeling anymore”. But REO’s in real estate terms means Real Estate Owned property.

What is REO? What does Real Estate Owned Mean to You?

What is a REO property? What is REO foreclosure? REO – Real Estate Owned in terms of real estate is when a home or property has been officially foreclosed on through the court of law and is now back in sole ownership of the bank / lender. A REO - Real Estate Owned property is the same thing as Bank Owned. More information on Bank Owned property.

What’s the different between REO - Real Estate & Foreclosure Property?

What is a foreclosure? A foreclosure is a legal process for a bank / lender to get the property back from a property owner who is behind on payments. Foreclosed homes have become very common since 2005. The banks first try to have a foreclosure auction were individual bid on the property but most of the times do not sell. At his point the foreclosure property becomes Bank Owned also known as REO – Real Estate Owned and is most likely listed with a Realtor in the near future. More information on Foreclosures & Foreclosed Homes

Buying Foreclosure, Real Estate Owned, Bank Owned Pros & Cons

When buying straight from a bank, it’s just like buying a “FSBO”, (for sale by owner) and it might cost you more in the long run if you are not informed on real estate practices and how things should be done. Real estate agents are trained plus they know the local rules, current market conditions & so on. Realtors have that knowledge and have a high standard of ethical codes to follow plus plenty or resources for help when a problem does arise.

Caveat emptor - BUYER BEWARE!!! When it comes to Foreclosures and Bank Owned Real Estate there are lots of real world things to consider. Who is liable for the delinquent taxes? Did the previous owns damage the property in anger because of their loss? Foreclosure Property and Real Estate Owned properties normally sell quicker and make is harder for a buyer to become properly informed about what they are really purchasing.

BUT YES, you can find some GREAT DEALS, save a lot of money and / or make a lot of profit in the end!