| REO simply means Real Estate Owned. Many people | | | | searchable list of properties. You will most likely be |
| loosely use the terms REO, Bank Owned, and | | | | directed to a REO agent. The majority of lenders |
| Foreclosure as one. I would like to clarify and enlighten | | | | utilize proficient listing real estate agent to assist them |
| the REO purchasing process. When a borrowers | | | | in the marketing and sale of their properties. Your best |
| defaults on a mortgage the current lender starts legal | | | | ali if you want to purchase a bank owned home is to |
| action to take possession of the property in default. | | | | find your area's leading REO listing agents. The agent |
| This is usually done by foreclosing through the | | | | will assist you in finding the appropriate home for your |
| governing court system. A borrower can also | | | | needs. |
| voluntarily give the property back to a lender and this is | | | | The first step to finding any home is to get |
| known as a deed in lieu of foreclosure. Either by court | | | | pre-qualified through a mortgage lender. If you are a |
| or by voluntarily release, once the property has been | | | | cash buyer you can skip this step but be prepared to |
| taken back from the defaulted borrower it becomes | | | | provide proof of funds to purchase a bank owned |
| real property of the foreclosing lender. This is then a | | | | home. Once you are qualified your agent can send |
| foreclosed, bank owned, REO property. | | | | you a list of homes. Drive by and narrow your |
| To purchase a REO a buyer can start on the internet. | | | | selection down to a few properties. The REO agent |
| The best place to find bank owned properties is to | | | | will then show, inform, and compare the selected |
| visit website of common banks. Try a Google search | | | | properties. Once you decide on a property and make |
| of Wells Fargo REO, Bank of America REO | | | | an offer the process has just begun. |
| properties, or HSBC REO. You will usually find a | | | | |