REO property is one of the best ways to buy real estate at below market value. REO means real estate owned by a bank. When the owner of a property does not pay their mortgage the bank that holds the mortgage sends a notice to the owner of the property. This notice lets the owner of the property know that the property is delinquent. Delinquent means all the payments are not up to date. If a property stay delinquent for a significant amount of time witch can be from one to three month, the bank will take possession of the property.
This time can vary from state to state. The process of the bank taking possession of a property is known as foreclosure. A foreclosure property is put up for sale in an auction known as a Public Sale. If the property does not sell or is selling for too low the bank will bid on it and keep possession of the property. After a property goes through this complex process it becomes a REO property. You can buy these REO properties from the bank. Since banks hates to holding properties because they are responsible for the taxes, they will more that likely love to sell a REO property to you.
Most banks have a list of their REO properties, if you ask they will show or give you their list to you to look over. When it comes to buying REO properties do your homework, see how much work you will have to do to the property to bring it up to good standers. One last thing when it comes to REO property is remembering that the bank dose not want this property, in this case you can usually get the bank to sell it for less than the first price they tell you. Buying a REO does take a bit more work but it will payoff in the long run.
A good web site where you can see more information on topics like this is Real Estate Facts which is highly recommended. Thank you and enjoy.
Source: www.ezinearticles.com
