| Most investors are interested primarily in REO listings, | | | | buyers agent or a real estate attorney, moving directly |
| foreclosures, and short sale properties. This is due to | | | | through the bank who holds deed on the property to |
| the common practice of severely reduced pricing on | | | | ensure that competition is less fierce and potentially |
| such real properties, though there are some bank | | | | underhanded. The buyers agent is paid by you and |
| owned properties which are not much of a deal at all. | | | | you alone, so it serves his or her interest to serve you |
| You will want to research a lot before delving into this | | | | exclusively. An attorney knows all of the laws and ins |
| type of buying practice, as some knowledge on fair | | | | and outs that you will need advised upon going |
| market values and the costs of improvements will | | | | forward, so having this team at your disposal could |
| factor in heavily on the type of return that you will see | | | | mean all the difference between failure and success. |
| out of the money you spend. You can find REO | | | | The process which the REO property goes through |
| properties for sale either through the realtors chosen | | | | before its sales status is determined is rather simple. |
| to list them or through the mortgage companies and | | | | When the home, land, or building owner defaults on |
| banks who are in possession of the properties. | | | | monthly payments, the bank will assess the current |
| REO properties for sale can be newer and less | | | | value of the defaulted property before just before the |
| worrisome, though most of these types of listings are | | | | foreclosure process begins. They do this by measuring |
| in disrepair and have been vacant for one reason or | | | | the existing debts against the property against the |
| another, usually for an extended period of time. There | | | | BPO or fair market value estimate. If, after certain liens |
| are many banks who hang onto their Real Estate | | | | or certain other debts are removed from the debtor |
| Owned properties and conduct all inquiries exclusively | | | | balance, the property is worth less than what is owed, |
| through their own offices. This is due to a great many | | | | the bank will attempt to negotiate a short sale deal |
| past discrepancies and issues between rival real | | | | with the current owner. |
| estate agents, whose tactics might stall the purchase | | | | If this is not possible, or if the current mortgage owed |
| of a property in order to ensure that the sale would | | | | is far below the fair market value for the property, the |
| credited to them rather than another agent. This may | | | | bank will opt for an auction. Should the auction fail to |
| still happen today, so be diligent about the realtor that | | | | produce the amount needed to pay off the debts, the |
| you choose. | | | | bank can either release the real property to the |
| Many investors and individuals looking to capitalize on | | | | highest bidder and take the loss, or the bank can place |
| these REO listings benefit from the hiring of either a | | | | the property as an REO listing. |