what is reo in real estate
Real estate owned
People also ask
What does it mean when a house is Reo?
What is Real Estate Owned (REO)? Real estate owned (REO) is a bank-owned property that failed to sell at a foreclosure auction. When homeowners fail to pay their mortgages Mortgage A mortgage is a loan ?provided by a mortgage lender or a bank ?that enables an individual to purchase a home.
What is a Reo listing?
A typical real estate owned listing has failed to sell during the foreclosure process and is now owned by a mortgage lender, bank or the mortgage investor. Buying an REO property is done through an REO agent or an auction platform.
How do I buy a REO property?
If the REO property is owned by the investor these can be found through portals maintained by the major mortgage investors: If the mortgage investor does not manage the REO then the mortgage lender does. In these instances, the mortgage lender would have to be contacted to purchase through the auction platform or listing agent.
What happens when a property reaches Reo status?
When ownership is transferred to the lender, the property reaches REO status and is officially real estate owned. Foreclosures aren fun for anyone involved, but there is a bright side to everything; smart real estate investors just need to know how to act on this potential opportunity.