A "Bank Owned Home" aka "Real Estate Owned" (REO) is a result of when a home owner defaults on their mortgage payments and the property is foreclosed on and is taken over by the Bank. The process is completed through a Trustee Sale and now has full ownership of the home. The bank then lists the home for sale with the REO agents. (Banks can’t sell them directly). As a result the new homeowner gets a good rate on a more reasonable priced home, opposed to the falsely inflated values that brought us to this collapse in the first place.

Lately, bank owned homes and REO's are very popular as of late due to high inventory, lower costs, and easy acquisition. If you are a qualified buyer and have a property in sight, be sure to inspect the property yourself if you are experienced. Otherwise, it is imperative to hire a licensed professional for any kind of repairs or maintenance that you can hold accountable. Reduce your inspection days to a week or two before you close the deal...AND try to have a qualified attorney or 3rd party present to record and sign off on the deal. Make sure you have a "financial plan" and/or a reasonable "budget" in place to make sure you are a better candidate than the other 30 files ahead of you trying to qualify for the same property! Lenders and their attorneys will bend over backwards if you are a qualified buyer. As a result the Bank, Attorney, Lender, etc. all get paid, hence they go to work for you. Also, make sure you do your due diligence with REO Agents and their listings to verify everything is legit before you go spending your time and money.

Caution: The latest scam has individuals stealing Realtor information on a home for sale, posing as a rental adviser and re posting it as a rental. Once they have a prospect they suggest you drive by and view the property and if you like it they set an appointment to collect your deposit. After its all said and done, you have unknowingly become a squatter in a property while it is still technically listed for sale! Be Careful!! If you looking for an REO/bank owned home, Contact Us today to help you get started!