Advantages of Buying an REO Property

For Sale Real Estate Sign With Bank Owned Notice

With limited housing options available in the Denver area, many buyers are looking at REO properties as an alternative to a traditional purchase. While the term “REO” or “foreclosure” may raise red flags for some buyers, the process truly isn’t all that different than buying a non-REO property. Here we’ll shed some light on what an REO property is and the advantages of opting for this type of property.

REO stands for Real Estate Owned and is another term for a foreclosed property repossessed by banks or lenders. If a lender or bank is the highest bidder at a foreclosure auction — or if no one else bids at the auction — the property reverts back to the lender and becomes an REO

For real estate investors and home buyers, bank-owned properties and REOs offer opportunities that are not available in the pre-foreclosure and auction phase of the foreclosure process. Buying bank-owned real estate offers the foreclosure buyer many advantages:

  • Bank-owned properties are usually sold at below-market prices with great terms like low down payments and low interest rates.
  • Foreclosures that are owned by banks are usually clear of any liens that may have been recorded against the property.
  • 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.
  • 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.

Interested in checking out REO properties in Denver? Contact Metrowest – one of our experienced professionals will be happy to help!

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.

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