| In the tumultuous housing market that has been | | | | need to pay property taxes and realtor fees, among |
| dominating recent years, there are losers and there | | | | other things), many banks try to sell the properties as |
| are winners. Those who have lost homes to | | | | quickly as possible, resulting in a potential goldmine for |
| foreclosure certainly know all too well what economic | | | | savvy homeowners and investors. |
| conditions have precipitated the housing crisis, including | | | | One of the first keys to profiting from the bank REO |
| rising interest rates and payments, dropping home | | | | mess is to have your finances in order. Banks often |
| values, and loss of income and sometimes | | | | prefer buyers with cash or with access to immediate |
| employment. However, some investors and | | | | financing, which means having all pre-approvals and |
| homeowners have managed to turn the housing crisis | | | | other pertinent documentation in hand. Another key to |
| into their own personal opportunity field, by playing the | | | | purchasing an REO property is to keep abreast of the |
| markets and becoming savvy about bank REO | | | | new listings. Often, realtors get the first stab at a new |
| opportunities. | | | | property, sometimes before it is even listed, so many |
| In simple terms, a bank REO is a home that the bank | | | | investors in this field often find themselves working into |
| owns, meaning that the previous owners have ceased | | | | realtor networks in order to take advantage of this |
| making payments and no longer hold the deed to the | | | | first notification advantage. A property at a good price |
| property. Once the bank decides to foreclose upon | | | | won't sit for long. Keep current on the market |
| the property, meaning that the property goes through | | | | conditions in the city or town you're looking at, so you'll |
| the legal proceedings of turning the deed over to the | | | | know a good deal when you see one and you can |
| bank from the mortgagee, the home is then termed | | | | move immediately if you find a property you like. |
| "real estate owned," which is abbreviated as "REO." | | | | Becoming educated on home repairs is also helpful, as |
| Often, banks take huge losses on REO properties, as | | | | you'll be able to walk through a property and make an |
| they generally sell them for far less than they loaned | | | | educated guess at the amount you will have to invest |
| for the mortgage to buy the property in the first place. | | | | to fix it up, and therefore will be able to make an |
| Since houses are expensive to keep and to sell (banks | | | | intelligent offer on the property. |