If you’re in the market for a home in the Denver area, you’re probably entertaining a lot of options. Because demand continues to grow, you might be checking out condos, single-family homes, custom homes, real-estate (bank) owned properties – you just never know where you might find your dreams. Supply is low in Denver, while demand is high, which makes purchasing an REO an excellent option for a lot of buyers. But what exactly is REO property and is it the right option for you? Keep reading to find out.
REO stands for “Real Estate Owned”. It’s an industry term for a foreclosure property that’s been repossessed by banks or lenders. If a lender or bank is the highest bidder at a foreclosure auction, or if no other party bids at the auction, the property goes back to the lender and becomes an REO.
For 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.
Some of the pros to buying an REO property include:
- Bank-owned properties are usually sold at below-market prices with great terms like low down payments and low-interest rates.
- Buying bank-owned properties involves less risk and less competition.
- Foreclosures that are owned by banks are usually clear of any liens that may have been recorded against the property.
- Bank-owned properties are usually vacant because the banks have evicted the previous owner, saving time, money and emotional toll involved in the eviction process.
Think an REO might be an option for you? Give us a call – Metrowest specializes in these types of sales and would love to help you start the process!