What is REO?

By
Real Estate Agent with Keller Williams Realty Simi Valley 01224852
What is REO?  Here's one for the longtail and a sort of WIKI entry to my BLOG!!!

In any business it is hard not to slip into the industry vernacular and forget that our audience may not really be following.  REO is an acronym for Real Estate Owned.  Here in Simi Valley and Moorpark an REO property  falls under the California process of foreclosure.  California is a Trust Deed state.  The term mortgage is a more universal term like Kleenex or Xerox for Californians.  

When a person borrows money against a property the Loan is made and secured against the property with an instrument known as a Deed of Trust.  The Deed of Trust has three partys.  The Lender (Beneficiary), The Borrower (Trustor) and the Trustee - an entity or person who holds the Title to the property until the Loan (secured by the Deed of Trust) is paid.

In the event that the Trustor defaults on the Loan, the Trustee is vested with the right (power to sell) to foreclose (non Judicially) on the property with in the parameters allowed by the state of California.  At the time the Trustee is entitled to set the date of sale, public notice is given.  The minimum bid is set at the amount owed on the property plus payments in arrears, plus costs.  This minimum amount is usually more that the market value of the property so the Beneficiary ends up with the property and then will either hire a real estate broker or private auction company to sell the property.  Once the Beneficiary takes title to the property, the property is now known as an REO.
close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Location:
California Ventura County Simi Valley
Groups:
Everything California
Localism Beta
Southern California Real Estate Forum
Tags:
lender
property
reo
simi valley
borrower
deed of trust
trustee
beneficiary
moorpark
real estate owned
trustor

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
54,482
Rick Callaham
Team Quintana Real Estate - Spokane, WA
Spokane Realtor
Hey thanks for the straight talk. People talking codes can be confusing
May 07, 2008 04:45 PM #1
Rainer
104,456
Ted Mackel
Keller Williams Realty Simi Valley - Simi Valley, CA
Simi Valley Real Estate Agent
Rick,  thanks for the comment!!  I am hoping that this gets picked up in the longtail searches so a consumer can get ther quick straight answer fast without the sales job to go with.  I think I am going to create a series of these WIKI style blog entries  on different acronyms.
May 07, 2008 04:53 PM #2
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainer
104,456

Ted Mackel

Simi Valley Real Estate Agent
Ask me a question
*
*
*
*
Spam prevention

Additional Information