Everything You Need To Know About REO Sales
by Probir Das SEO PersonThinking of buying a new
property? Well, you should get acquainted with some of the real estate terms,
and one of them is “REO”. “REO” stands for Real Estate Owned. When a property
is termed as REO, it simply means that it is owned by a bank or lender, often
due to varied liquidation processes. Read on to find some of the more relevant
facts.
What does REO imply?
Like everyone else, you must have
heard about foreclosure. Let’s assume that Mr. X took a big amount of loan for
his business and kept his home as a collateral security. However, he was unable
to pay the debt on time. In this situation, the bank will take over his
property to settle his debt, which is a very standard procedure. Of course, the
entire process is a tad more complicated than this. Typically, a foreclosure
sale is announced, and the bank will be the highest bidder in that (at least in
majority of cases). If the bank wins the bid, the property is termed as REO.
Sometimes, banks and lenders may become the owner of the property via a deed in
lieu of foreclosure.
What happens next?
Mr. X has lost his right to the
property. The REO property will be sealed or locked by the bank or lender. If
there is a need for immediate repairs, the same will be addressed before the
house is locked. However, in most cases, the lender knows about the status of
the loan, and therefore, regular inspections can be done to check for occupancy
and other matters that need attention. In some cases, banks hire real estate
agents who specialize in REO sales, so that the property can be
disposed effectively after the foreclosure process is completed.
What do REO management companies do?
They can do a lot, depending on
the nature of the contract they have with the bank. In most cases, they deal
with the redemption, eviction of the occupants, maintenance and repair work,
market analysis, marketing the property and so on. In case the property has
tenants, the REO Management Company or real estate agent may offer a cash
amount to vacate the house before the actual term. In many states of the US,
there are specific norms and rules related to the process of vacating foreclosed
properties, which these agents must adhere to.
Buying a REO property
Once the property is ready for
sale, the real estate company involved in the deal will try to find ways to
promote the sale. Typically, the REO management company handles the overall
process of sale, because banks are just interested in getting the final price.
In some cases, your offer for the house will be negotiated and considered at various
levels before the final call is taken. If all parties agree on the discussed
terms and conditions, the real estate agent will initiate the sale process, and
in due time, after the payments have been made, you can get access to the
foresaid property.
Check online to find a company
that specializes in REO sales.
Right Choice Realty of NC LLC
http://www.rc-nc.com/
9204 Falls of Neuse,
Raleigh NC,
27614
info@rc-nc.com
919 435 0856
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Created on Oct 4th 2017 08:02. Viewed 241 times.