REO’s get their name from the way in which banks or lending institutions categorize this type of asset property in the books. To them it is a non-performing asset. Most people commonly refer to these properties as foreclosures. An REO occurs when an individual or company takes out a mortgage from a private lender, and they cannot meet their payment obligations. If that institution forecloses on the property then it is called a Real Estate Owed Property (REO). Banks will then take that house to auction, and if it does not sell there they will take it back to the market to try and have it sold.
It is important to note that many banks will negotiate with homeowners who are having financial difficulties to try and get the properties sold to avoid defaulting on a mortgage.
Are you planning on buying a foreclosed or short sale property? We can help you navigate the intricacies of such purchases. Do you have a property and you are having financial difficulties? Do you think you may need to liquidate that property? We will give you our honest and unbiased opinion.
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