What Does REO average When Buying Real Estate For Sale?
As a character investor, I am often asked what does REO average when buying real estate for sale? An acronym for ‘real estate owned’, REO refers to foreclosure character repossessed by mortgage lenders. When foreclosure real estate does not sell by public auction it returned to the lender, who in turn lists the character for sale by an stated realtor.
A second question buyers ask is what does REO average in terms of buying houses at discounted prices? Most bank owned homes are sold slightly below market value. Since similarities are sold in “as-is” condition, edges consider home repair costs and adjust prices consequently.
Although REO homes are typically more expensive than houses sold by public auctions, overall they are truly cheaper. Most foreclosure similarities require multiple repairs because foreclosed homeowners are financially incapable of properly maintaining the home.
Many similarities sold by auctions have liens and judgments attached. In some situations, foreclosed homeowners continue residing in the home until evicted by the court system. All of these issues are resolved once the bank takes possession of the home. Buyers are able to buy REO homes with a clean title and quickly take possession.
Real estate owned similarities are sold by each bank’s loss mitigation division or designated realtor. Since edges have incurred foreclosure legal costs and fees associated with lien, judgment or tenant removal, there is little room for negotiating the asking price.
Bank owned homes can be a great option for first time home buyers, real estate investors, or individuals looking for an affordable vacation home. REO houses are perfect for use as rental houses or lease-to-own similarities. Since bank owned foreclosures are priced below market value, investors can reap profits by rehabbing and flipping the house or offering seller carry back financing.
Buying bank REO similarities can save investors and home buyers time and money. There is no need to use time attempting to remove creditor and tax liens or commence with eviction action when tenants refuse to vacate foreclosure similarities.
Time-consuming details are taken care of by the bank; allowing buyers to buy the character at a discounted rate and quickly take possession of the character. Closing on a foreclosure home can take several months, while REO purchases can be expedited in a matter of weeks.
Many resources are obtainable for locating real estate owned similarities. Countrywide, Remax, Prudential and Bank of America publish bank owned foreclosure homes for sale directly on their company websites.
Many mortgage lender and realtor websites include additional resources to help borrowers further reduce the cost of buying houses by first time house buyer programs and government grants.
These are just a few options obtainable for buying REO homes at reduced prices. The Internet offers an abundance of information to help home buyers and investors locate distressed similarities. Local realtors often offer foreclosure seminars to help buyers understand the time of action of buying foreclosure homes by auction or bank loss mitigators.
Take time to conduct research, attend seminars or talk with real estate professionals to learn the ins and outs of buying REO real estate. Doing so can help you acquire exceptional real estate at considerably reduced prices.