If you are interested or already involved in real estate investment, REO properties may be able to help you to take your business or investments to a new level. Real estate owned, or REO, properties are foreclosed properties that are presently owned and “occupied” by the bank that foreclosed. Houses, trailers, condominiums, and basically any form of real estate can be REO. Foreclosure is the process by which a bank comes to own a property. It evicts the previous owners, pays off any outstanding debts on the property, and takes title. Now the property is an REO property.
Foreclosed properties are usually put up for auction shortly after the foreclosure, but frequently they do not sell, forcing the bank to hold onto the property and to sell it through other means. This gives potential buyers time to make an offer and drives down the REO properties’ prices. This can reduce the sale price of REO properties by as much as 40% below market value. Whether you are an investor or just trying to get a great home that you could not otherwise afford, REO properties can be great opportunities. In the years following 2008, around a third of home sales were “distressed” sales. The volume of these kinds of homes on the market further decreases prices.
If you are wondering how to buy an REO property, all you have to do is contact a bank. If you want to browse or to start buying these kinds of homes, a foreclosed home search with bank REO listings can get you started. Your foreclosed home search may not even take very long, considering the volume of properties on the market. Your foreclosed home search can be entirely local, too. Foreclosed homes and the bank branches that own them are everywhere. Banks have their Reo foreclosure listings available because they are trying to sell these homes as fast as they can, making your foreclosed home search easy.