Learn how to buy a real estate owned property from the bank in this guide to REO properties.
Whether you’re looking for your next home or your next investment, real estate owned (REO) properties are worth looking into. Often referred to as “bank-owned” or “distressed” properties, REO properties can typically be purchased at a discount compared to the retail market. That’s a great opportunity to buy a home or investment property at a lower price.
While they can be a worthwhile investment, there’s a lot to know about buying a real estate owned property. Learn what REO properties are, where to find them, and important things to know about buying them in this guide.
What are REO properties?
REO properties are properties owned by a bank or other institution after going through foreclosure. REO stands for “real estate owned.” If a property doesn’t sell at a foreclosure auction, it becomes an REO property and can often be purchased at a discount.
Banks create mortgage loans using two documents — a note and mortgage. The note outlines the terms of the loan, such as interest rate, payment amount, and length of the loan.
The mortgage is a security instrument used to protect the bank in the event the buyer doesn’t pay according to the terms of the note. If the buyer defaults, the bank can foreclose on the property in order to recoup their initial investment.
When a foreclosure property becomes an REO
The foreclosure process requires that the property is sold at a public auction. Most auctions have a minimum bid amount, meaning the property won’t be sold until the minimum bid amount is met. Banks strategically set the minimum bid. Some keep it low, offering a large discount compared to the current market value to increase the likelihood of the property selling at auction.
7¢ Skip Tracing – Guaranteed lowest price on the market for the best quality data.
Don’t just take our word for it. Try us out by running a small list first to see the tier 1 data for yourself. We are offering non-members access to member pricing, so you can experience the Skip Force Difference and improve the quality of your lists.
Pay wholesale price for quality data
Receive the TOP 3 Phone Numbers
Discover which phone numbers are best
Learn the BEST Time to reach a contact
We can take your old list, grade it and come up with the
BEST NUMBERS to contact
Develop a SNIPER MARKETING Plan
Increase ROI and TEAM MORALE
We have extended this special but cannot afford to keep this offer running for long.
Have Questions? Reach out to us, we’re here to help.
Call us at: 866-962-8190
Get Started Now
Related News
In the fast-paced world of real estate, staying ahead of the competition requires effective lead generation strategies. Cold calling is a tried-and-true method for reaching potential clients, but it’s not enough to simply pick up the phone and start dialing numbers. To maximize your success, you need well-crafted cold calling scripts that engage prospects and […]
In an era where climate change is a pressing global concern, the concept of sustainable living has gained immense traction. People are increasingly looking for ways to reduce their carbon footprint and adopt eco-friendly practices in their everyday lives. One significant way individuals are contributing to this movement is by embracing eco-friendly homes. These sustainable […]
The world of luxury real estate is a world unto itself, where opulence meets exclusivity, and where properties are not just homes but statements of prestige and wealth. In the United States, the luxury real estate market has always been a bellwether for economic prosperity and a playground for the rich and famous. From sprawling […]