What’s the Difference Between a Foreclosure and REO Property?

Denver-Home-Foreclosure

House hunting in the Denver area? If so, you may be a bit overwhelmed by all the property types you’ve been seeing. Traditional single-family sales, short sales, foreclosed properties and the like – the terminology can get confusing, but it’s important to know the differences between these types of properties.

Is an REO property the same as a foreclosure?

Foreclosures and bank-owned properties are similar, but not identical:

  • An REO is only produced as a result of an unsuccessful foreclosure.
  • When a foreclosed property does not attract a buyer, the mortgage company must repossess the property and sell it as an REO (real estate owned).
  • REO properties can be a good route to take for first-time home buyers and beginning investors because of significant discounts and relatively fast turnaround.

Interested in taking a look at REO properties in the Denver area? That’s what we specialize in! Give Metrowest a shout – we’re happy to show you around.

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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