What Does a Typical Bank REO Look Like?
Monday, April 7th, 2008High Interest Bank had an REO on its books. It was a three-bedroom, two-bathroom house in a fairly good area of town. High interest Bank was hoping in the worst way that it could get rid of that property. It wanted to convert it from a liability back into a mortgage that paid interest, in other words, it wanted someone to buy the property.
Banks could rent an REO and generate some income in that fashion. However, their expertise is in lending, not in property management. Besides, a rented house is harder to sell than a vacant one. As a result, they usually won’t do this unless the market is so bad that they can’t otherwise dispose of their REOs.
investment property