Whether you’re looking for an investment property or a new place to call home, an REO property (real estate owned) may be the perfect option for you. Real Estate Owned properties are properties owned by a bank. These properties have gone through the foreclosure process, but no one successfully bid on them for purchase. There are many advantages to buying bank REOs – keep reading to learn more about the advantages of going the REO route.
Advantages of buying an REO include:
- All liens against the property are removed once it becomes an REO, and taxes are paid.
- Unlike properties at the foreclosure auction, REOs can be inspected prior to contract, and are listed with real estate agents.
- While many foreclosures are often in poor condition, REOs are typically restored to at least a readily salable condition by the lending bank.
- The bank or lending institution that owns the property will often offer financing with better deals than they would offer on traditional properties.
- The bank or lender that owns the property will often provide an allowance for certain repairs.
- You can save money in your title search if you use the same title company that the lender used during foreclosure. They will often discount the cost up to as much as 100%!
- REO properties are usually listed on your local MLS (multiple listing service), or can be located by going directly to your local REO bank‘s website.
- REOs will often times include appliances.
The first thing you want to do if you’re considering an REO property is to find an agent who’s experienced in these types of sales. Metrowest specializes in REO sales. Give us a shout today – we’d love to help you start the process.