REO properties include real estate which is owned by the bank. Properties can include single-dwelling homes, multi-family dwellings such as duplexes or apartment buildings, commercial property, farms and vacant land.
A common misconception is REO properties are sold for pennies on the dollar. This is typically not the case. Banks want to recoup their losses and at least break even on their investment. Therefore, most REO properties are sold for the amount due on the note. Currently, few banks accept less than ninety-five cents on the dollar. However, as foreclosure rates continue to escalate, banks will be forced to accept lower amounts in order to liquidate their inventory.
It's important to realize that real estate is not returned to the bank until an attempt has been made to sell the property through a foreclosure auction. Individuals who desire to invest in REO foreclosures must work with the lender's Loss Mitigation Department. These individuals will make or break your REO deal, so it's wise to be nice to them and make a fair offer on the property.
In the past, buying REO properties has been the turf of real estate investors. With the economy in a slump and home prices prohibitively expensive in many areas across the U.S., several first time home buyers are now investigating REO properties. Experts advise working with an REO specialist in order to ensure a successful transaction.
We currently offer REO foreclosure properties as low as seventy cents on the dollar. Individuals and real estate investors interested in purchasing single family residence (SFR) properties are invited to subscribe to our RSS feed or email address to obtain regular updates. Subscription boxes are posted on the left sidebar.
Published on February 09, 2008 at 07:10 PM
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