REO = Real Estate Owned

Real estate owned or REO is a class of property owned by a lender—typically a bank, government agency, or government loan insurer—after an unsuccessful sale at a foreclosure auction.

As soon as a property goes into a distressed status (the borrower/home owner misses mortgage payments) the beneficiary will want to determine the amount of equity that the property has.

A popular method to determine the equity is to obtain a Broker's Price Opinion (BPO) or order an appraisal. Based on the amount of equity that is determined from the BPO, the bank will decide whether to allow a short sale (if requested by the homeowner).

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Inroducing. . .

Foreclosure Process

The foreclosure process varies in every state The foreclosure process varies in every state and it's imperative that homeowners understand this process. One thing is for sure, time is NOT on your side. But, an educated consumer is always an informed consumer who can make a "good" decision based on facts. Learn everything you can because this will affect you in every which way and it is something that should not be taken lightly.
The foreclosure process varies in every state and it's imperative that homeowners understand this process. One thing is for sure, time is NOT on your side. But, an educated consumer is always an informed consumer who can make a "good" decision based on facts. Learn everything you can because this will affect you in every which way and it is something that should not be taken lightly.

Foreclosure proceedings can begin after a single missed payment, but it isn't very likely. Most banks and lenders have a grace period for late payments, usually with a fee added on. It typically takes being a full 30 days late for the alarm bells to go off.

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Did You Know?

As I'm sure you are aware, there are lots and lots of REO properties on the market now. Sad times for the home owners that lost their homes - But a great opportunity for buyers!

Even just a few months ago, buying an REO was very much like buying any other seller-owned home on the market, except that it can take a little longer to get your offer accepted in the beginning - Banks and Asset Management Companies are notoriously slow to get around to signing those offer documents.
But still, in the end, REO's are a great opportunity for buyers. They are generally priced very competitively to begin with, so you might get a very good price.

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