REO’s are houses that have been taken back by the bank through foreclosure. If no bidder purchases the home at the auction, the bank will be the winning bidder. They will assign the house to the “REO” department. REO stands for “Real Estate Owned.” The REO department will assess the home, appraise it, hire a real estate professional to market it. The bank may or may not fix the house up. It is case by case.
Bank REO’s are motivated sellers. They don’t want to keep the home for long and will try to liquidate to recoup losses. The bank wants the most money they can get for the home but they also don’t want to keep it on the “books.” For a buyer, the advantages of buying repos is that you will be able to get a quicker response from the bank than a short sale. You won’t have to pay cash like you would at the foreclosure steps and you will get the title insurance and a chance to get inspections performed and to negotiate repairs. Of all the categories in the distressed property realm, I like REO’s the best. You are dealing with a bank who has staff and procedures that allow for more reasonable responses and time frames. I find REO’s to be a “viable” possibility for first timers.
SECRET REVEALED: REO’s are a viable option for first time homebuyers.
As Excerpted From "Home Buying Secrets Revealed" By Kenn Renner, Copyright 2010 "All Rights Reserved" www.BuyHomeBuyingSecrets.Com - 512-423-5626 - www.BuyAustin.Com
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