Capitalizing on REO properties can be a sure-fire way for you to build wealth in real estate, too.
REOs are properties that don't sell to bidders at foreclosure auctions and are taken back by lenders. Because lenders don't manage real estate, they will often try and sell their REOs quickly to interested homebuyers or investors – sometimes 30-50 percent below market value!
The Rich Group has a whole division dedicated to bank owned listings and buyers.
The key to success with our buyers is education. If you are intersted in purchasing a bank owned property we encourage you to read Buying Bank Owned Properties (REO).
We also have created some customized search tools to assist you with finding the right property to call home. Please click on the links below to view REO listings by area/city, or for a more detailed search or complete list of REOs available contact The Rich Group REO Division at 323.630.6976 or email REO@ARichGroup.com:
Real estate owned or REO is a class of
property owned by a
lender, typically a
bank, after an unsuccessful sale at a
foreclosure auction.
[1] This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank. The minimum bid in most foreclosure auctions equals the outstanding loan amount, the accrued interest and any costs associated with the foreclosure sale including attorneys' fees.
After an unsuccessful auction, the bank will go through the process of trying to sell the property on its own. It will remove some of the liens and other expenses on the home and try to resell it to the public, either through future auctions or direct marketing through a Realtor. Generally speaking, bank REO properties are in poor shape in terms of repairs and maintenance; however, real estate investors will often go after these properties as banks are not in the business of owning homes and so, in some cases, the low price can more than compensate for the condition of the property.
Once a property is REO, the bank or lender will try to get rid of the property by either selling it directly themselves or thru an established broker. Many larger banks such as Bank of America and Wells Fargo have REO/asset management departments that will field bids and offers, oversee upkeep and handle sales. These banks typically have these searchable listings available on their websites. A free list of bank "REO pages" can be found on thru external links listed below.
