| REO real estates are managed by financial institution | | | | transacted to you. This is usually not possible if you are |
| REO assets management department. It usually sold | | | | buying a foreclosure property on a foreclosure auction. |
| at a deep discount (could be 30%) compare to market | | | | Secondly, there is no need to wait for the bidding to |
| value. | | | | begin to start your offer as there is no auction date |
| Many investors are aiming for REO properties to reap | | | | like in the case of buying a foreclosure property. You |
| big profit. Why? It is because banks are forced to own | | | | can do this anytime when you think you are ready. |
| these REO properties as a result of unsuccessful bid | | | | Furthermore, as there are so many foreclosure |
| during a foreclosure auction, and banks always | | | | properties piping up, the bank normally will not able to |
| anxiously trying to get rid of these properties as soon | | | | process all this transaction within a short period of time. |
| as possible and thus they are willing to sell it at a price | | | | Therefore you have pretty much time and a very |
| that far below market value. Sometimes the price is | | | | good chance to secure many good REO properties |
| less than what is owed on the mortgage. | | | | from the bank's REO inventory. |
| Although most banks will have a REO asset | | | | Anyway, you have to take note that the bank REO |
| management department, normally they will engage | | | | assets management department usually will take |
| qualified Realtor who specialized in this REO field. | | | | several months to close a REO transaction. And most |
| Beside the possible low price of the REO property, | | | | of the time you have to folk out your own money to |
| there are other advantages of buying a REO property | | | | renovate the REO property after purchased as the |
| than a foreclosed property. | | | | bank will not sell it in best condition. |
| The first major advantage is that you can inspect the | | | | Generally if you have done your works and have |
| property before putting up an offer to the bank banks. | | | | chosen the property carefully, buying and selling an |
| By doing so, you will know how big is the property and | | | | REO property is a great investment that could make |
| estimate how much money you need to folk up if the | | | | you a lot of money. |
| property needs to be repaired after successful | | | | |