Have I looked at REOs?
Monday, June 5th, 2006REO stands for “real estate owned” and it refers to prop¬erty that a lender has taken back through foreclosure. Lenders hate this kind of property because on their books it shows up as a liability instead of as an asset. Therefore, they are very anxious to get rid of REOs. However, not so anxious that they’re willing to take a loss if there’s any way to avert it. The big plus for you in dealing with a lender over dealing with a home seller in foreclosure is that it’s a cleaner deal. There’s no crying or recriminations. Also, you can usually get title insurance and sometimes the bank often will even help you with the financing! The downside is that lenders don’t like to admit publicly that they have a REO problem. Many won’t admit they even have any REOs. Thus, you can’t usually just walk in and ask to buy one. (REOs show up as liabilities on the books of lenders. Too many REOs lead to insolvency.) On the other hand, the lender wants to get out from under the REO by selling it, therefore it needs you.




investment property