REOs, or Real Estate Owned Homes, are homes that did not sell at public foreclosure auctions. These foreclosure properties represent a serious worry to lenders, who are burdened with these distressed properties and eager to get them off the books. This means that lenders are often willing to offer significant discounts to rid themselves of REO real estate - and that means big savings for real estate bargain hunters.
- What is an REO Home?
Most foreclosure property is repossessed because the homeowner has failed to pay their mortgage. Once the home goes into foreclosure, the lender tries to sell the property at a public auction in order to recoup the money lost on the loan. If the property does not sell at auction, however, the lender is faced with the prospect of holding onto and trying to sell these REO properties. Some lenders sell their REO homes through a real estate broker or third party. In any event, lenders are not real estate experts and just want to rid themselves of their REO property. For this reason, many lenders sell their REO foreclosure below market value.
- Taking Advantage of Foreclosures
If you want to start taking advantage of REOs, DistressedPropertiesSale.com can help. Our bank REO listings are comprehensive and easy to use, so that you can always find the foreclosures, bank owned homes, and government foreclosures you want. Plus, we offer resources that bring you useful investment tips and teach you about Fannie Mae, tax sales, buying tactics and more.