REO- Real estate owned. This is the street term, inside of a bank it is called OREO, Other Real Estate Owned, because on a banks balance sheet they do own property that they want to own such as the office buildings or land for potential office or branch sites. REO's are properties that are bought at the foreclosure sale by the bank, i.e. the bank is the high bidder at the sale. These properties are classified as non performing assets on the banks balance sheets, they are a liability to the bank. REO's are sold with good title, in most cases, and the occupants have been evicted, the properties cleaned out of trash and debris. REO's are sold by realtors. You can get an appraisal and maybe a loan depending upon the property condition.
Foreclosures- Properties bought at the courthouse steps on auction day. These properties where never owned by the lender so they can not be classified as REO or OREO. They come with or without occupants, which means the buyers evict the tenants. They are not trashed out. You (in NY) have to put 10% down in non refundable cold hard cash at the auction if your bid is successful. You have to fund within 30 days or you may lose your 10% deposit or pay daily fees for delays. You usually can not get an appraisal as there is no interior access to the property unless it was listed or the occupant lets you in, which means you better have the balance, 90%, in cash. Title may or not be clean depending on the circumstances. Foreclosures are not sold by Realtors, they are sold by the sheriff or an appointed trustee or referree.
There is alot more and so little time. Interested in buying a foreclosure or REO in Dutchess County NY, contact me at www.247REOREALTY.com
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