At 804 Real Estate, LLC - our brokerage has listed/sold approx. 200+ REO/bank-owned properties for several different asset companies. To help both agents and buyers understand the REO process, we have compiled this webpage for further understanding of these types of sales.
An REO (Real Estate Owned) or bank-owned property refers to a property that has been acquired by a lender, typically a bank or mortgage company, through the foreclosure process. When a borrower fails to make mortgage payments and defaults on the loan, the lender initiates foreclosure proceedings to recover the outstanding debt. If the property does not sell at a foreclosure auction, the ownership is transferred to the lender, making it an REO property.
Once a property becomes an REO, the lender takes possession of it and assumes responsibility for its maintenance and sale. REO properties are typically sold by the lender through a designated department or a real estate agent specializing in such sales. These properties are often listed on the market at a discounted price compared to similar properties, as the lender's primary goal is to recoup the outstanding loan balance.
Investors and homebuyers interested in purchasing an REO property can search for listings through various sources, including bank websites, real estate listing platforms, and specialized REO websites.
It's important to note that buying an REO property may involve additional considerations and complexities compared to a traditional real estate transaction, such as potential property condition issues, limited disclosures, and an as-is purchase agreement.
Overall, REO properties provide opportunities for buyers to acquire real estate at potentially favorable prices, but it's essential to conduct thorough due diligence and work with professionals experienced in REO transactions to navigate the process successfully.
The conditions of sale for REO properties can vary depending on the specific lender and the property itself. However, there are some common conditions that buyers often encounter when purchasing an REO property. Here are a few examples:'
It's important for buyers interested in purchasing an REO property to carefully review the terms and conditions outlined in the purchase agreement and work with a real estate agent or attorney who is experienced in handling REO transactions.
Want more information regarding REO/Bank-Owned Properties? Feel free to contact us directly regarding your inquiry.
Copyright © 2019 804 Real Estate, LLC - All Rights Reserved.
804 Real Estate, LLC is a registered trademark with the united states patent and trademark office (USPTO).
STATISTICS GIVEN ARE AVERAGES BASED ON CVRMLS DATA - INDIVIDUAL RESULTS CAN VARY.
Powered by GoDaddy Website Builder