What does "REO Repossession" mean?

Asked by Tnncastle, Vail, AZ Fri Aug 2, 2013

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8
Annejuliaa, Home Buyer, Dallas, TX
Wed Jun 10, 2015
Repo Homes are commonly known as repossessed homes or foreclosures or Real Estate Owned (REOs). These properties are a tract of genuine land that has been repossessed by banks, government agencies and lending instituions after a homeowner defaults on his or her mortgage loan. These homes are normally traded below market value because the lending institution seeks quick compensation for their money. http://reohomes.org/
6 votes
Robin Willis, Agent, Tucson, AZ
Fri Aug 2, 2013
It means that a homeowner did not make their mortgage payments and the bank repossessed their home. REO stands for Real Estate Owned. This is commonly known as a foreclosure.
2 votes
Jodileeo, Home Buyer, Fort Worth, TX
Wed Jun 10, 2015
Many foreclosure auctions fail to bring in any bids. Banks or other mortgage lenders do not set foreclosure prices according to the home’s market value. The lenders try to cover their losses and fees. The foreclosure minimum bid price usually includes the balance of the unpaid mortgage loan, interest owed, attorney’s fees, and costs generated by the foreclosure process. Especially in a soft real estate market, the asking price could tower above market value.

Once a property becomes an REO, the lender will prepare the house for sale, including removing the occupants, clearing liens on the property, and determining a price. Generally, lenders do not do any upgrades or repair work on REO properties, which are sold “as is.”

When the home is ready for sale, the lender will work with a broker to put the property on the market.

Reference Link: http://reohomes.org/process/
0 votes
Jonathan Dal…, Agent, Glendale, AZ
Thu Aug 8, 2013
REO is real estate owned; owner was foreclosed upon and the property's now owned by the prior owner's lender.
0 votes
Kat Tyree, Agent, Tucson, AZ
Wed Aug 7, 2013
Real Estate Owned, as in the previous owner defaulted on the loan owed, and the property was repossessed by the bank as collateral for the loan. When a buyer signs loan documents, the remedy for non payment of the loan is the bank's right to take the property back.

Have more questions? Please call me - I can help.

Kat Tyree, Associate Broker
Long Realty Co.
520-730-5540
0 votes
Spirit Messi…, Agent, Tucson, AZ
Fri Aug 2, 2013
REO means Real Estate Owned, it is a foreclosure. If you are considering buying, speak with a local lender to get pre-approved first. This is for you so you can see where rates are at, your purchase price, what the mortgage will be and etc., however in today's real estate market you will be required to submit a signed pre-qualification form on any REO listing, or the bank will not even consider the offer.

Next, speak with a local Realtor and start a relationship today. Many sites, like Trulia and Zillow are not very accurate, they list many properties that are not for sale or are currently under contract.

Please click on my profile, read over 85 past client written reviews and feel free to give me a call with a questions or concerns.


Best of luck.

Spirit


Spirit Messingham, PLLC
3rd Generation Full-Time Realtor®
Tierra Antigua Realty
Direct (520) 471-6900
Fax (866) 365-5208
SpiritRealty@cox.net
http://www.TierraAntigua.com
0 votes
Tiffany Carl…, Agent, Scottsdale, AZ
Fri Aug 2, 2013
REO means Real Estate Owned or Foreclosed.
0 votes
Ron Thomas, Agent, Fresno, CA
Fri Aug 2, 2013
REO stands for REAL ESTATE OWNED;
it means that the property has already gone thru Foreclosure and is now owned by the Bank.

The only question remains; how long will they hold on to it?
0 votes
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