You’ve heard the term REO, it seems like everybody is talking about it these days, but what does it mean? REO stands for Real Estate Owned and it is a term that applies to properties that went through the foreclosure process and failed to sell at auction. Now the lender or bank legally owns the property and they want to sell it in order to recoup their original investment.
It’s important to note that banks and lenders don’t want to own property.
They accept it as a form of collateral, because of its inherent value. But banks are not in the business of real estate, nor do they want to be. So when a bank finds itself owning a property, they generally want to sell it as quickly as possible to a qualified buyer. As long as the bank is only holding the note on a property, the property is an asset to them. Once they own a property there are costs for upkeep, so an owned property becomes a liability. Banks prefer to keep things in the asset column.
For a Home buyer this means an opportunity to buy a home from a motivated seller. It also means the home will be offered at fair market value minus the costs of necessary repairs, and the timeline for escrow will be shorter. This is usually all really good news for a home buyer; however it requires having your own paperwork in order and working with experienced professionals who can help you to meet all of the necessary deadlines. Island Advantage Realty LLC is the recognized expert in REO property sales for the Metro NY and Long Island areas. If you want some one to help you take advantage of the current REO market, look no further.
The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances. Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action. For further information or questions please contact Gabriella@IARNY.com
