REO property is one of the best ways to buy real estate at below market value. REO means real estate owned by a bank. When the owner of a property does not pay their mortgage the bank that holds the mortgage sends a notice to the owner of the property. This notice lets the owner of the property know that the property is delinquent. Delinquent means all the payments are not up to date. If a property stay delinquent for a significant amount of time witch can be from one to three month, the bank will take possession of the property.
This time can vary from state to state. The process of the bank taking possession of a property
is known as foreclosure. A foreclosure property is put up for sale in an auction known as a Public Sale. If the property does not sell or is selling for too low the bank will bid on it and keep possession of the
property. After a property goes through this complex process it becomes a REO property. You can buy these REO properties from the bank. Since banks hates to holding properties because they are responsible for the taxes, they will more that likely love to sell a REO property to you.
Most banks have a list of their REO properties, if you ask they will show or give you their list to you to look over. When it comes to buying REO properties do your homework, see how much work you will have to do to the property to bring it up to good standers. One last thing when it comes to REO property is remembering that the bank dose not want this property, in this case you can usually get the bank to sell it for less than the first price they tell you. Buying a REO does take a bit more work but it will payoff in the long run.
A good web site where you can see more information on topics like this is Real Estate Facts which is highly recommended. Thank you and enjoy.
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Frequently Asked Questions
Foreclosure no problem on home loan in 2006, big problem to refinance today - Why?
By: AtWitzEnd | 10-09-2008
In March 2009 I will have a bankruptcy removed from my credit report. In 2004 my home was foreclosed. I have worked on my credit and my score is in upwards of 700. In December 2006 I purchased a home and the bankruptcy or the foreclosure did not have any effect. I got a great deal on my home and use the bi-weekly auto draft for mortgage payments. My wife has become disabled and we have had to use credit cards due to the loss of her income and the increase in gas, food, medical expenses, etc. Do I have a chance at getting either a home refinance, equity or debt consolidation to pay off the credit cards? We are not behind on the bills, but we have had to use our savings as well and there isn't any money for any closing costs. Any good advice?
Who holds the mortgage?
By: nancy | 09-09-2008
1974 Littleton Road,Monroe,N.H.what bank or mortgage company holds the mortgage?what is their phone# and address?Please let me know.my e-mail is...vankleefgrammy@aol.com
Can an Amended Notice of Lien be filed?
By: Susan | 09-09-2008
Can an Amended Notice of Lien be filed?
Can you obtain a peddler's licence in Jersey City ...
By: Jjr. | 09-09-2008
Can you obtain a peddler's licence in Jersey City? If so where?
Property Deeds in New Orleans
By: terry | 08-09-2008
How do I obtain my property deed in New Orleans, Orleans Parish, LA?
Having lien removed
By: wings59752 | 08-09-2008
We built a home in Haywood Co., North Carolina. Our builder filed an invalid lien on our property. No action has been taken in the required 180 days (It has been over a year). We have been told that we should be able to have it removed. Can you tell me how to do this? Thanking you in advance.
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