| Real estate owned or REO properties go back to | | | | When the lending company is not able to sell the |
| mortgage companies or banks after they are | | | | property at an auction, the property comes back with |
| unsuccessfully sold at foreclosure auctions. Most | | | | a different name. These properties may now be called |
| properties on auctions never make it to a successful | | | | REO properties. |
| sale. They become REO properties after the bank or | | | | Once the banks repossesses the property, the |
| mortgage company repossesses them again. | | | | borrower's mortgage loan is eliminated. In some cases, |
| The foreclosure sale usually begins with a minimum bid. | | | | an eviction is necessary if the occupants of the |
| The minimum bid for the foreclosure sale includes the | | | | property have not yet vacated the house. Some |
| loan balance, any accrued interest, additional attorney's | | | | repairs may also be done on the property in order to |
| fees and other costs associated with the process of | | | | make it more attractive to potential buyers. After the |
| foreclosure. When you bid at a foreclosure auction, | | | | eviction and repairs, the bank will negotiate with the |
| you need a cashier's check in your hand for your bid's | | | | IRS to remove any tax liens. When a buyer purchases |
| full amount. If you are successful, you will receive the | | | | the property, he will receive an opportunity to |
| property in its present condition. That means that you | | | | investigate on the property. |
| may also receive the property with someone still living | | | | If you are planning to invest on real estate properties, |
| in it. In addition, there may also be liens against the | | | | investing on real estate owned properties would be |
| foreclosure property. | | | | the best idea. However, not all of these properties are |
| However, most foreclosure properties are seldom sold | | | | sold at bargain prices. Research is recommended in |
| because the total worth of the property is lower than | | | | order for you to get the best deals. Usually, private |
| that of the total amount owed by the original owner. | | | | investors offer the best deals for REO properties. |