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Real Estate Owned (REO) or Bank-owned Once the foreclosure process has been completed and the title of the property has been relinquished to the lender, with no other successful outside bids on the property, and the lender has placed the highest bid, then the property becomes Real Estate Owned (REO) or Lender-owned. These properties are usually available for purchase and will usually be listed for sale with a real estate broker, or kept in the lenders in house inventory for disposition. When the property is listed, it becomes a fairly normal transaction just like any other home for sale with a few notable exceptions .The banks and third party asset management companies typically take longer to review and approve any offer, so patience is a must. The property is typically offered As-Is and requires the purchaser to agree to addendums and riders to the purchase agreement that protect the banks interests. There is much more room for negotiation in REO transactions. Unlike the foreclosure process, you can inspect the property prior to making your offer, the bank may make some repairs and you can obtain financing for the property. The lender may include other terms of sale requiring you to obtain a pre qualification for your loan from them, or to obtain the loan from anyone but them. Often if there is offer competition the lender will request a "Highest and Best" after all offers have been received and prior to submittal to the Lender . You can contact the REO department of the lender to determine how they are handling the property, or contact me, Alex Shefchek, 303 570-8918, and I would be happy to research details and represent you in this transaction. Email: alex@alshefchek.com |