Why Should an REO Property be on your Radar?

For several reasons, REO properties can be a great value for both investors and first time home buyers alike. But what exactly is an REO property and why should you consider this type of house? REO stands for Real Estate Owned, and these types of homes have been repossessed by banks after the owners were unable to comply with mortgage obligations. Buying these types of properties is a different process than traditional homes, but with an experienced pro on your side, you can use that to your advantage. Read on to learn why expanding your search to include REO homes could be a very good thing.

  1. No baggage
    REO homes are free and clear of any past liens or other discrepancies. The bank responsible for the repossession will immediately extinguish any liens against the property and make sure that taxes are brought current. It’s a safe bet that REO homes are free of government and municipal liens, HOA liens, tax burdens and anything else that could impede an impending transaction. Those buying REO properties will usually be able to do so with a clear conscious, and an even clearer title.
  2. You can still negotiate
    Banks are motivated sellers as they want to rid themselves of the homes they repossess. Home buyers and investors ready to take advantage of the opportunities they offer will be rewarded accordingly. Since banks want to get REO properties off their books, buyers can actually leverage the bank’s urgency to their own advantage.
  3. Possible concessions for buyers
    While many REO properties are marketed “as is”, it’s safe to assume there will be little room to negotiate a cheaper price when buying REO properties. Still, it doesn’t mean you can’t get the bank to make a few concessions of their own. Remember, the bank is in no hurry to hold on to the properties they repossess. And while they certainly won’t give them away, they may be willing to meet somewhere in the middle on more than a few things.

Ready to start checking out REO homes in the Denver area? There are some great deals to be had Contact Metrowest today – one of our experienced pros 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.

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!

No comments yet.

Leave a Reply