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


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.

Get More Real Estate Market Info... Subscribe Below!

Learn more about us and find other resources on buying investment properties with us. Like us, follow us, connect!

Leave a Reply

Your email address will not be published. Required fields are marked *