Crisis Proof Investments
REO Properties: Real Estate Owned Properties are single family, multifamily, lots and condos that have been foreclosed upon and taken back as assets by the bank. These properties are offered with substantial discounts. These properties are available in many areas and in various conditions, ranging from satisfactory to very poor.
If a lender takes ownership of a property, either through an agreement with the owner during pre-foreclosure or at public auction, the lender will usually want to re-sell the property to recover the unpaid loan amount. The lender will then typically clear the title and perform needed maintenance and repair.
One of the primary advantages of buying a bank-owned REO property is that investors are purchasing a property without liens or other encumbrances. Before lenders make REO Timberland Properties available for sale, they typically expunge all liens or claims against the property. Any cloud on the title — a second or third mortgage, mechanics liens, taxes or any other liens attached by creditors — are wiped out.
What are the advantages of buying bank-owned
properties or REO homes?
• Buying bank-owned properties involves less risk and less competition.
• Foreclosures that are owned by banks are usually clear of any liens that may have been recorded against the property.
• Since the seller of REO homes is also the lender, you can negotiate with the bank to have them pay for all or some of the closing costs.
• Bank-owned properties are usually vacant
because the banks have evicted the previous owner, saving the investor
or homebuyer time, money and emotional toll involved in the eviction process.