Green Body Online

The properties that a lender failed to sell it in an Auction is called an REO. Since the property has already gone back to its lender then the mortgage for the house no longer exists. The buyer receives the title insurance policy and the lender settles such things as eviction , tax liens and homeowner dues.

A bank or mortgage company forecloses on a property. After a few months of legal hassles, the lender finally gets clear title to the property and hires a local real estate agent. Of course, the lender, at this point, wants to try and recover almost all of the money lent on the property

All banks work differently but would like to sell the property on as is condition. Banks hire realtors to evict tenants, perform inspection and takes care of the necessary repair of the property.

Some foreclosed properties require a lot of repairs. This is one of the reason why an experienced Realtor chooses to buy a property after it was reverted to the bank. Some banks shoulder the cost of repair but most would sell the property on as is condition.

Having these type of property ( REO ) signifies that a bad loan has been given and every month as the bank earns these type of property it indicates that the bank is losing money , REO is not considered as an asset but as a liability.

Tags