| An REO property is a type of foreclosure. Specifically, | | | | case, the bank since it will help them get rid of the |
| when a property does not fetch a high enough price at | | | | property. To be sure, the bank stands to gain from a |
| a foreclosure auction, the bank/lender will take the | | | | quick sale because by liquefying their real estate |
| property back, and if they are an institutional lender, the | | | | holdings banks can reinvest that money into the |
| property will become an REO (or Real Estate Owned) | | | | business of lending. Further the bank will want a quick |
| property. | | | | sale so as not to prolong the real estate management |
| These lenders aren't usually too interested in keeping | | | | expenses they have to. As mentioned This type of |
| the REO for very long, since banks are not in the | | | | inspection is seldom available with foreclosure auctions |
| business of managing real estate, and are therefore | | | | which is what when added to the bank's sense of |
| anxious to liquidate these properties as quickly as | | | | immediacy in selling the property makes Real Estate |
| possible. This makes it a perfect opportunity to cash-in | | | | Owned properties (or REOs) so great. |
| on real estate for an investor. However, one must | | | | REOs are a great investment as long as you have a |
| remember that every REO need not necessarily be a | | | | clear understanding of what exactly it is that you are |
| good deal, but in general, it has been seen that when it | | | | getting into. Simply put, the bank wants to dispose off |
| comes to an REO there usually is a lot of money | | | | these homes, and if you manage to find the right |
| waiting to be made. | | | | property and are prepared to make a serious |
| Investors who consider purchasing an REO usually | | | | investment, it can prove to be a great way to take |
| have two distinct advantages that they would not | | | | your successful plunge into the real estate investment |
| ordinarily have, had they instead been dealing with a | | | | business. |
| property at a foreclosure auction. The first benefit of | | | | If you are looking to get information on REO |
| an REO is that you are able to inquire and ultimately | | | | foreclosures foreclosures, there are some |
| buy the property at your convenience with no auction | | | | comprehensive websites out there that specialize in |
| deadline to work with or around because these | | | | providing that information. One such website that really |
| properties are listed with real estate brokers and, for | | | | stuck out from all the others was |
| the most part, sold just like any other property. The | | | | GovernmentAuctions.org I was really impressed by |
| other big advantage of investing in an REO is that you | | | | just how many REO listings they had within their online |
| have the option of inspecting the property thoroughly | | | | database. The great thing about their website is that |
| before you actually close the deal, which option you do | | | | you can browse from all types of different foreclosure |
| not ordinarily have in a foreclosure auction. You have | | | | auction listings from all 50 states and find information |
| the liberty to walk through the property and make all | | | | on them in areas closest to you. |
| sorts of inspections without annoying the seller - in this | | | | |