| If you are a new homebuyer, looking for your first | | | | a more affordable home and lower mortgage |
| home, you will want to take a good look at bank | | | | payments. |
| foreclosed homes. For many first-time homebuyers, | | | | In addition to price, bank foreclosed houses are also |
| bank foreclosed houses - also known as Real Estate | | | | attractive to first-time homebuyers because they |
| Owned (REO) properties - are a good choice. This is | | | | carry fewer risks than many types of distressed real |
| because these homes offer all the benefits of | | | | estate. Lenders have to take legal possession of the |
| foreclosures - including low prices - but with fewer | | | | property, so they often remove any title problems or |
| risks and hassles than many other types of distressed | | | | liens on the property and evict any tenants, so that |
| homes. | | | | new homeowners do not need to worry about these |
| REO properties are homes which have been legally | | | | issues when buying an REO home. |
| repossessed by lenders after a homeowner has failed | | | | As well, most REO homes are sold on behalf of |
| to pay a mortgage. Since lenders simply wish to | | | | banks by real estate agents. Most homebuyers are |
| recoup the money lost on the loan and do not want to | | | | familiar with real estate agents, and this often makes |
| pay the management costs on a property, they are | | | | new homebuyers feel more comfortable, since it |
| often willing to price these REO homes below market | | | | means that buying bank foreclosure houses is similar |
| value. For the first-time homeowner, this often means | | | | to buying traditional real estate. |