Move N Places • Equal Opportunity Housing
Contact Info
You can reach me at (480) 390-7369 (Direct). You can also send email to PatrickHarvey@cox.net
Move N Places
202 W Main St #101
Mesa, AZ 85201
REO Home, REO Listing
When a home goes to foreclosure, the home goes to auction to sell to the highest bidder. The lender (the bank) bids the amount of their loan, plus costs, or some other amount they decide to bid. (Often the amount is reduced based on recent market value)When the auction takes place, sometimes there are no bidders besides the lender. When this happens, the bank takes back the property (ie. the owner who couldn't pay "gave it back to the bank")
Banks do not like owning real estate, though, they prefer to own performing loans (loans with someone making timely payments.) When the property goes back to the bank, it is termed REO, or Real Estate Owned. So an REO home is one the bank owns and doesn't really want (they have to pay upkeep, utilities, etc.) So once a home becomes REO, the lender is much more motivated to sell it, and it is not uncommon to be able to buy these properties at substantial discounts.
The process of negotiating an REO sale with the bank is not unlike negotiating a short sale; an excellent relationship with the lender is a great asset.
An REO listing is simply a listing (a property listed for sale) which is owned by the bank or lender.