Real estate owned or REO is a class of property owned by a lenderâ€”typically a bank, government agency, or government loan insurerâ€”after an unsuccessful sale at a foreclosure auction. A foreclosing beneficiary will typically set the opening bid at a foreclosure auction for at least the outstanding loan amount. If there are no bidders 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 this foreclosure property, such as with a high loan-to-value mortgage following a real estate bubble. As soon as the beneficiary repossesses the property it is listed on their books as REO and categorized as an asset (non-performing asset). Whew!
There is no better time to buy an REO or a short than now. Interest rates and market prices are low.
Call me anytime to discuss REO properties, I love to talk Real Estate! I have a few great properties that you can look at.
This one. Lori, is a short sale. Not yet an REO.
Have a great day!
631 661 8888
Licensed Real Estate Sales Associate
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I hope this answered your question! If you have any further questions, please feel free to contact me by the ways below.
Wishing you all the best,
De Vonte Williamson , LSA
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Coldwell Banker Residential