What Is an REO (Bank-Owned) Sale?
Some of the Fastest Deals in Town
Once a bank has foreclosed on a property, it is then termed an REO property (stands for “real estate owned”). While a short sales and foreclosures can be excruciatingly long processes, banks typically waste little time in getting rid of properties once they actually own them. REO properties are placed on the market and listed on the MLS database along with other properties for sale. Some websites suggest there are exclusive lists of bank-owned properties and try to sell this information, but this is a scam. The banks want these homes sold as quickly and for as much money as possible, and the way they do this is by placing them on the open market.
REO properties are often placed on the market at a below-market price in an effort to encourage a bid-like scenario. The banks will request that buyers submit their “highest and best” offers, and the action can often be quick. Often times, the properties need repairs that will prevent them from being purchased with traditional financing. Many buyers of bank-owned properties are cash buyers or are working with hard-money lenders.