| Most real estate investors, homeowners and potential | | | | spell a great difference regarding REO vs. foreclosure. |
| homebuyers may have encountered the term REO or | | | | REO is definitely given a comparatively low market |
| real estate owned properties and the term that most | | | | price since in reality, banks are doing their very best to |
| of them do not want to deal with, foreclosure. | | | | sell the property the soonest possible due to all the |
| Although there are apparent similar terms when | | | | liabilities and financial losses they incurred in acquiring |
| defined, REO is essentially different from foreclosure | | | | the property. Purchasing foreclosed properties on the |
| since it technically refers to a property that has | | | | other hand requires homebuyers to start with a |
| already been foreclosed and did not yield any potential | | | | minimum bid in a foreclosure auction. Furthermore, the |
| buyer during the foreclosure auction or sale. | | | | minimum bid for the property is inclusive of loan |
| Most homebuyers found themselves torn by an | | | | balance, accrued interest and all other fees and costs |
| important decision whether to purchase an REO | | | | incurred during the process of foreclosure. |
| property or foreclosed ones. After all, home purchase | | | | - Home Inspection and Appraisal. REO property |
| is considered one of the most vital and valuable | | | | purchase is a hassle-free transaction in the first place, |
| investments a person could ever make, thus, making | | | | including the provision of privileges to potential |
| the right choice is the initial step to a successful real | | | | homebuyers to make home inspection and appraisals |
| estate venture. Before making the final decision and | | | | which is not always the case when buying properties |
| plunge to whatever type of property you plan to | | | | in a foreclosure auction. This is an advantageous |
| purchase, it is imperative to know first the distinctions | | | | opportunity for homebuyers since they have personal |
| between REO and foreclosed properties. | | | | or first-hand experience going around the house and |
| What are basic facts on REO vs. Foreclosure? | | | | checking its quality and other functions. Most buyers |
| The fundamental difference is the essence of the two | | | | bring along home inspectors and appraisers who can |
| components, REO means a property that has already | | | | help them evaluate and assess the value of the house |
| been foreclosed and foreclosure is the process of | | | | they are planning to buy, as well as possible setbacks |
| taking back a property due to the inability of the | | | | that they may find along the way. It adds more |
| previous owner to comply with the mortgage payment | | | | confidence and security to the buyers who primarily |
| agreement he has with the lending company or the | | | | aim to put their hard-earned finances into a sound and |
| bank that issued him the house loan. | | | | wise real estate venture. |
| In terms of transaction and investment, there are | | | | The main issues and concerns regarding REO vs. |
| likewise salient distinctions between REO and | | | | Foreclosure give ample time and opportunity for |
| properties that are yet subject to foreclosure auction | | | | investors and buyers to weigh the pros and cons of |
| and sale. | | | | both components. |
| - Market value. This is one of the basic factors that | | | | |