What is a Bank-Owned Property?


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!

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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