Lender Owned or “REO” properties are owned by a lender, typically a bank, government agency, or government loan insurer—after an unsuccessful sale at a foreclosure auction. A foreclosing on the property, the bank or lender will typically start the opening bid at a foreclosure auction for usually the minimum of the outstanding loan amount. If there are no bidders or buyers that are interested, then the beneficiary will legally repossess the property. This is commonly the case when the amount owed on the home is higher than the current market value of the property that has been foreclosed. As soon as the bank or lender repossesses the property it is listed on their books as REO and categorized as an non-performing asset.
The bank or lender will remove the liens and other debts on the “Asset” and try to resell it to the public, either through future auctions, direct marketing through a real estate broker. The asset manager may also try to contact REO realtors that specialize in certain areas to help sell this bank owned property, in order to get the Asset off of it’s books. These are listed on the ( MLS ) Real Estate Investors will often purchase these properties because of discounts offered to compensate for the condition of the property.
We have long term established working relationships with various banks and lenders. We work with the lender’s asset managers to list and sell these properties. Please contact us to inquire about these particular properties.
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