| REO properties are one of the best ways to buy real | | | | After a property goes through this complex process it |
| estate at below market value. REO means real estate | | | | becomes a REO property. You can buy these REO |
| owned by a bank. When the owner of a property | | | | properties from the bank. Since banks hate holding |
| does not pay their mortgage the bank that holds the | | | | properties because they are responsible for the taxes, |
| mortgage sends a notice to the owner of the | | | | they will be more than happy to sell a REO property |
| property. This notice lets the owner of the property | | | | to you. |
| know that the property is delinquent. Delinquent means | | | | Most banks have a list of their REO properties, if you |
| all the payments are not up to date. If a property stays | | | | ask they will show or give you their list to look over. |
| delinquent for a significant amount of time, which can | | | | When it comes to buying REO properties do your |
| be from one to a couple of months; the bank will take | | | | homework, see how much work you will have to do |
| possession of the property. | | | | to the property to bring it up to good standards. One |
| This time can vary from state to state. The process | | | | last thing when it comes to REO properties is |
| of the bank taking possession of a propertyis known | | | | remembering that the bank does not want these |
| as foreclosure. A foreclosure property is put up for | | | | properties, in this case you can usually get the bank to |
| sale in an auction known as a Public Sale. If the | | | | sell it for less than the first price they tell you. Buying a |
| property does not sell or is selling for too low the bank | | | | REO does take a bit more work but it will payoff in |
| will bid on it and keep possession of the property. | | | | the long run. |