| Bank owned property also known as REO (Real | | | | apply for a loan. The money must be in cash only. This |
| Estate Owned) is property that is owned by banks or | | | | is one reason that you do not see many first time |
| other lending companies due to the foreclosure. If you | | | | buyers at these auctions and several real estate |
| ever watch television, then you have more than likely | | | | investors. |
| seen all those commercials that hype you up with the | | | | If you plan to attend an auction and purchase a Bank |
| possibilities of buying REO properties and then turning | | | | owned property, remember you will not have time to |
| around and selling them for huge profits. Do not jump | | | | learn if the home has liens on the property, if it needs |
| on board and purchase their kit! The kit may give you | | | | repairs, how much is owned on the loan, the costs that |
| some information but if you do not understand the | | | | incurred and so on and so forth. You may purchase a |
| process, you will still be sitting there scratching your | | | | home that needs more repairs than the home is worth. |
| head wondering what to do next. | | | | If the home does not sell at auction, the bank or lending |
| If the bank or lending company owns the property, the | | | | company still owns the property. Now, the lender will |
| majority of time the property is worth more than what | | | | be more apt to take lower offers, however, they are |
| is owed on the property or is worth the amount left on | | | | not going to let you still the home. They still need the |
| the loan. The bank has ignored all offers, as they want | | | | money that is owed on the loan. However, many |
| to reap the rewards and receive what the property is | | | | homes are not worth the amount of the loan and they |
| worth as well as receive their money. | | | | may negotiate. |
| In most cases, the bank can only receive the amount | | | | If you want to learn more about foreclosures or REO |
| that is owed on the loan; however, if the property | | | | properties in your area, you should talk with a local |
| goes to auction they can add other fees. If the lender | | | | realtor and learn as much as you can about these |
| sells the home prior to an auction, they normally lose | | | | properties. Your professional realtor will be able to |
| money. A few fees that you will have to pay if you | | | | negotiate on your behalf as well as know how to learn |
| purchase the property at auction include accrued | | | | about the property and help you find the home of your |
| interest, attorney fees, and other fees that occurred | | | | dreams at a much lower price than you might imagine. |
| during the foreclosure process. At auction, you cannot | | | | |