| Many homebuyers know that bank foreclosed | | | | willing to negotiate an attractive home loan package |
| properties, or REO (Real Estate Owned) properties, as | | | | for the buyer to ensure that the buyer purchases a |
| they are sometimes called, have many benefits. Most | | | | mortgage product from the lender. |
| buyers are attracted to these properties, after all, | | | | Another advantage of bank foreclosed properties is |
| because they are often sold below market value. | | | | that they are much easier to buy than most distressed |
| These homes are repossessed by banks after a | | | | properties. In order to take legal possession of the |
| homeowner defaults on a home loan, and resold by | | | | property, lenders usually need to take care of any |
| the lender in order to recoup the costs of the loan. In | | | | legal issues, evictions, and other problems, so that there |
| addition to a low price, however, bank foreclosed | | | | can be fewer risks with buying an REO property, even |
| properties also have secondary, or hidden benefits, as | | | | though the savings can be comparable to other types |
| well. | | | | of distressed property. A lender will take care of many |
| One of the hidden benefits of REO homes is that they | | | | details, including appraisals. As well, most bank |
| can ensure a better mortgage rate or better mortgage | | | | foreclosed properties are sold by a third party real |
| terms for the buyer. Banks are eager to do business | | | | estate agent, so getting tours of the property, property |
| with new customers and are eager to sell their REO | | | | information and negotiating an offer are usually made |
| homes. This often means that when buyers seek to | | | | very straightforward for the buyer. |
| purchase an REO home from a bank, the bank is | | | | |