For new investors and new agents here is a quick clarification of an often misused/misunderstood term. You will hear people saying "REO" in one form or another including "REO's" and "REO Properties" among a few others. REO simply means Real Estate Owned. Where it gets confusing to some is that REO does not only mean real estate owned by a bank or lender they have accepted in lieu of foreclosure or have foreclosed upon but the term also indicates any property held by an individual including their primary residence.
When a loan originator is accepting an application from a prospective borrower there is actually a section for the listing of real estate owned. When that part of the application is encountered the loan originator may use the abbreviation REO instead of saying the words "real estate owned". This is the time where all properties are listed whether or not there is a registered mortgage attached to them.
In the real estate investment industry when you see the words REO in an advertisement it is generally assumed the subject property is a foreclosed property or property that has otherwise come into the possession of the bank or lender.
Novation Mortgage does provide financing for REO properties (foreclosures and pre-foreclosures) in Georgia, Florida and Alaska and can be reached at 866-946-0120 extension 101.
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