Real Estate Owned, also known as REO, property listings are owned by a lender or bank after a foreclosure auction that was unsuccessful. The lender, then sells these Real Estate Owned listings through realtors that specialize in this type of property. While banks own this type of property, it is considered a liability and lenders will work hard to make a sale. Usually, banks have an entire department that handles nothing but their REO inventory. Before searching for these listings, learn the types, features, benefits, and considerations. You can find a REO property several different ways, but should have important questions ready when making an offer to the bank.
Types and features of real estate owned listings
Real Estate Owned (REO) listings can be commercial or residential properties. These properties can include condos, office buildings, and single-family homes.
Real Estate Owned (REO) properties can have liens against them as well as other expenses. These fees are usually taken care of by the lender before the property is put up for sale.
Benefits and considerations of real estate owned listings
If a bank owns the property, they will usually sell it for less than what is owed on the property’s mortgage. Home buyers can find a good deal this way.
However, many Real Estate Owned (REO) properties are not in the greatest condition. Buyers need to be prepared for renovation. Banks will sell properties as they are and will rarely cover any repair costs.
Also, it can take longer to close on a Real Estate Owned (REO) property than a regular listing. Banks don’t have to close in a certain amount of time. This process could take months.
Finding a REO property and making an offer
You can find Real Estate Owned properties several ways. The easiest way is to simply search online. Another option is to go directly to a lender. However, each lender handles REO properties differently. Some will post this type of listing on their website.
When making an offer on a Real Estate Owned (REO) property, be sure to ask important questions. You should ask about any inspection reports and repair work that the bank has agreed to. You should also ask how long it will take the bank to close on an offer.
Working with an experienced realtor makes it easier to find REO properties in your area. This professional can find options from more than one lender and can also guide you on a fair price. For more information, contact the Elite Real Estate Group in Amarillo. Give us a call today at (806) 337-0883 or Contact Us via email. You can also view our listings to see the homes we currently have available in the Texas Panhandle area.