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.

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