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.
Ken Cook - Web coder (I write the programs that make the whole world zing!) (678) 439-8683 Anything your mind can conceive I can create - online that is!
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NOTICE: I have been writing in this blog since July 2006. Some of the older articles may contain information that has changed. Please check the date and phone me if you have any questions.
5 Comments
on A Short Clarification of The Definition of "REO" Properties
SEP
21
2007
Ken, thanks for your explanation. I've been a Realtor forever, and I was reading a blog last night and realized I had no clue what REO meant and the implications to a buyer client who was trying to purchase one. It sounds a lot easier than dealing with a not-yet foreclosed upon short sale.
Patricia - there are a lot of things we can all still learn - nobody knows it all. Well, I know a couple of people who know everything ;)
Al - AL MAXWELL! What is up old friend??? Yes, you still live in the neighborhood? Let's go hit some little white balls or grab a plate at Buffalo's soon. 678-946-0101 is my private line.
Armando - thank you! Remember I have my Florida license and I have the team that doesn't know when to stop closing loans. Commercial, jumbo/super-jumbo, construction, investment and homes for everyone. 866-946-0120 ext 101. Y hablamos espanol - yo y la esposa tambien.
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