After foreclosure auction and no bids were accepted, the property becomes that of the bank and referred to as Real Estate Owned or Bank REO.
Now may be a great time to buy bank owned properties. These are real estate properties that the banks have foreclosed on and are losing money on. A property that a bank holds is referred to as a bank R.E.O.
These REO’s would want to be sold by banks or mortgage company as quickly as they can in order to avoid additional expenses in holding the properties.
Bank foreclosures also may be referred to as an REO property. REO property stands for Real Estate Owned. Because banks are more interested in lending money for homes, businesses, and autos, and not the real estate business ” they want to sell the property as quickly as they possibly can.
Banks are losing money while keeping REO on hand. They might as well give these properties even below the market value rather than continue losing money for keeping the properties.
One advantage of buying property after foreclosure is dealing with the bank directly and making sure that the property has a clean title. The bank shoulders all the liens and provide a clean title for interested buyer.
While others save on REo, one need to be sure that what she’s offering is worth her time and money. You need to have the property check and assess the repairs needed. This will help you in preparing your final offer to the bank and have your assessment to back up your offer.
It’s advisable for buyers of REO to inspect the property. This way, you can personally see the condition of the property and make an assessment as to how much you need to repair the property.
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