So, I’m sure I intrigued a lot of you yesterday with this fun topic! Frankly I was a little worn out, but decided to have another go of it today.
REO
REO stands for “Real Estate Owned” and is the term used when the bank (lender) now owns the real property and is selling it. It’s happens when there are no bidders at foreclosure OR if the bids are too low – the bank will have a representative present at the foreclosure auction to prevent a sale from occurring at a price lower than they are willing to accept.
So, when looking at a listing that is REO, it simply means the bank owns it… the bank IS the seller. The good news is that they will clear up any title problems remaining from the foreclosure. The bad news is that the property will still be sold in as-is condition; and there will be an addendum to the Regional Sales Contract that will override some of the provisions therein. Interestingly, they are also exempt from providing the residential property disclosure. However, as we see the market continue to soften, some REO lenders are becoming more open to negotiation on the terms of home inspection items/repairs – this is good news.
I was going to go into short sales today, but I think that’s best left for tomorrow. I couldn’t let today pass without a mention of the day – September 11th. A day that will always stand out in our hearts and memories with shock, horror and disbelief that such a horrible atrocity could be carried out on US soil. I’ll never forget that day and hope that we never see another day like that – EVER.
Happy Tuesday
Jennifer
