5 Reasons to Consider Buying an REO Property

When a bank takes back a property as a result of foreclosure, the home becomes what is known as a Real Estate Owned (REO) property. Since banks aren’t really in the business of owning property, it’s possible to buy REO properties for a discount, or at least at fair market value.
When a bank has to take back a property, they want to sell it as soon as possible because physical “assets” look like liabilities on their books. At the same time, the bank wants to make as much money as possible on the sale of the property to recoup the loss they experienced in the foreclosure.

For both home buyers and investors, bank-owned properties and REOs offer opportunities that are not available in the pre-foreclosure and auction phase of the foreclosure process.  Consider the following advantages if you’re thinking an REO property could be right for you:

1. Bank-owned properties are usually sold at below-market prices – or at least at fair market price – with great terms like low down payments and low interest rates.

2. Buying bank-owned properties involves less risk and less competition.

3. Foreclosures that are owned by banks are usually clear of any liens that may have been recorded against the property.

4. Since the seller of REO homes is also the lender, you can negotiate with the bank to have them pay for all or some of the closing costs.

5. Bank-owned properties are usually vacant because the banks have evicted the previous owner, saving the investor or homebuyer time, money and emotional toll involved in the eviction process.

In areas where prices are high and inventory is low, REO properties can help house hunters become homeowners, but only if you have a pro on your side. If you’re considering buying an REO property, give Metrowest a shout. We specialize in these types of sales and would love to help you start the process.

Ken Blevins

About Ken Blevins

Ken Blevins, CEO of Metrowest Real Estate Services, is a veteran in mortgage and default servicing with more than 24 years of experience in collections, foreclosure/bankruptcy, loss mitigation and real estate disposition (REO). Blevins was an original co-founder of Metrowest in 2003, a Real Estate Brokerage and Services Company focused on the resale, recovery and liquidation of distressed real estate in Denver, Colorado and surrounding metros. Blevins assumed the role of CEO in January 2014 and provides strategic direction and has management accountability for the day-to-day operations. Under his direction, Blevins drives all default management operations to maximize asset value recovery and reduce loss severity through a strategy focused on customer service and state of the art technology. Blevins has 18 years of direct operational experience in all facets of REO Asset Management having managed large national REO Disposition contracts for Fannie Mae, Freddie Mac, Wells Fargo, JP Morgan Chase, CitiFinancial, GMAC Mortgage and other various financial institutions. Blevins specialties include REO asset management, real estate investment, bulk REO acquisitions and distressed asset recovery and liquidation, and he has directed the resolution and liquidation of over ten billion in institutionally-owned residential real estate.

Get More Real Estate Market Info... Subscribe Below!

Learn more about us and find other resources on buying investment properties with us. Like us, follow us, connect!

No comments yet.

Leave a Reply