Buying Bank Owned Properties

You've heard the term REO, but do you know what it is? An REO (Real Estate Owned) is one that goes back to the bank after an unsuccessful foreclosure auction. What many don't know is that most foreclosure auctions do not result in sales. That is why the property ends up on the foreclosure list.

Foreclosure sales begin with a minimum bid that includes the loan balance, any accrued interest, plus attorney's fees and any costs association with the foreclosure process. In order to bid at a foreclosure auction, you must have a cashier's check in your hand for the full amount of your bid. If you are the successful bidder, you receive the property in "as is" condition, which may include someone still living in the property and other liens against the property.

Since what is owed to the bank is almost always more than what the property is worth, very few foreclosure auctions result in a successful sale. Then the property "reverts" to the bank. It becomes an REO, or "real estate owned" property.

For more information on REO properties or if you would like a list of those in the Toledo area, contact me!