| Okay, depending on who you are, you have got to be | | | | estate properties, especially ones that are foreclosures |
| tired of asking people what REO means or of people | | | | and are just sitting there doing nothing and not making |
| asking you what REO means. Either way, it is a tired | | | | any money for the bank. Banks are in the business of |
| question and about time someone somewhere | | | | lending money to make money. They are not in the |
| answers it. That's what I'm going to do...uh, in a moment | | | | business of selling real estate. They may be in the |
| or two after I finish my morning coffee... | | | | business of owning real estate sometimes. But only if |
| Okay, okay! I have had my morning picker-upper and I | | | | they are making money on it! |
| am ready to answer the dreaded question! What | | | | The thing with a REO property is that you can bypass |
| does REO mean? It's simple. REO stands for Real | | | | going to a real estate agent and just handle the whole |
| Estate Owned, and usually references a piece of | | | | real estate transaction directly with the lender. It's very |
| property that is Real Estate Owned by a lender, such | | | | typical of any lender to clear the title himself for a |
| as a bank. You need to find this out, of course, if | | | | buyer, and do so in a very expeditious manner. Time is |
| you're interested in a particular property and want to | | | | money. A house just sitting there without someone |
| view and/or make an offer on it. So find out the REO, | | | | living inside it and making mortgage payments is indeed |
| call them, and set up an appointment. | | | | a cash casualty to a lender. And as is often the case, |
| Often the case will be that the property is a | | | | they would rather sell the house low than continue |
| foreclosure. That is a property wherein the previous | | | | taking a loss on it. |
| owner or resident could not make monthly mortgage | | | | You can find listings of REO properties in the real |
| payments, so the lender or bank was compelled to | | | | estate section of most newspapers or by contacting |
| foreclose and repossess the property. With REO, the | | | | most real estate agencies. Buying a foreclosed |
| case usually is that the property has already gone | | | | property can save you tons of money and provide |
| through the foreclosure process, has been | | | | you a lower interest rate on your loan too. Remember: |
| repossessed by the bank and is now up for sale. | | | | the lender or bank wants to get rid of this foreclosed |
| Banks take possession of such properties via an | | | | property. Not make a killing on it. And speaking of killing... |
| agreement with the prior owner, and do so either | | | | Yes, to the second part of the subject of this article: |
| during pre-foreclosure or at a public auction of the | | | | You can foreclose on your mother. But I highly advise |
| property. | | | | against it. I mean do you really want to turn your |
| The nice thing about buying a home foreclosure is that | | | | sweet old loving mother into a cold, calculating killing |
| the lender is usually willing to sell the property at a | | | | machine? And do you really want this lethal individual |
| lower price in order to recover the unpaid loan amount, | | | | after you? Think about it. And be scared. Very scared. |
| which can be 30% to 50% less than market value. | | | | And don't foreclose on mom! |
| The thing is, banks don't really want to hold on to real | | | | |