Bank Owned
There is a lot of interest and opportunity with bank-owned/REO properties these days. REO stands for “Real Estate Owned”. These properties have already gone through a foreclosure sale and now are owned by the bank. The banks hold these properties on the liability side of their balance sheet under the line item, Real Estate Owned, which is where they get their name.
Unlike buying a home at a foreclosure sale, an REO property will be free of tax-liens and occupants and generally come with title insurance and the ability for a buyer to perform a home inspection as a contingency of the sale. Homes bought at foreclosure auction are sold “AS IS” and without the benefit of a satisfactory home inspection or finance contingency. For most buyers, an REO property is a better and safer way to buy foreclosed properties.
Not all REO properties are good deals as is so often thought. When considering an REO property, a buyer needs to carefully consider the asking price, the comparable properties in the neighborhood, and how much money is required to put into the property for improvements. Your Innovative Realty Agent can help you find and assess REO properties.
