Real Estate Emporium
Los Angeles Branch
Servicing L.A. County
HQ's-2393 Pacer Dr.
Norco, CA 92860
ph: (323)375-9788
fax: (323)927-1673
alt: (323)632-2868
info
What's A REO?
One way or another the lender now owns the home. Maybe the home owner just couldn't make their payments. Maybe the lender didn't approve a short sale purchase. Maybe the home wasn't bought at auction. In any case, the lender owns it. They've already taken a loss against the original loan balance on the property. With REO properties, you're more likely to get an answer within days or weeks instead of months. The bank has taken a big loss and usually these properties are listed pretty close to the rock bottom of the current market value.
- Q. What does REO mean?
A. REO is an acronym for Real Estate Owned. REO is a financial industry term referring to properties that have been foreclosed upon and is now owned by the bank or lender. This is not the same as a property up for foreclosure auction.
- Q. Why do people purchase REO's?
A. People purchase REO's for a number of reasons. The properties are offen listed "as is". That makes them great opportunities for those who want to buy and fix up the properties and use them as a principle residence or an investment property.
- Q. What's the advantage of purchasing a REO vs. an Auctioned Home?
A. When buying a property during an auction, you must pay at least the loan balance plus interest and other fees accumulated during the foreclosure process. You must also be prepared to pay with cash in hand. In addition, the property you'll receive is 100% "as is". That includes existing liens and current tenants that need to be evicted. When you purchase an REO it is a much easier and attractive transaction.
For some reason the REO property did not sale at the auction. The bank will evict occupants, remove tax liens, and if needed prepare the issuance of a title insurance policy to the buyer at closing.
- Q. Can you buy a REO property with a mortgage or is it cash only?
A. Most lenders would prefer cash only transactions. However, many banks allow financing and some will even provide the financing themselves. FHA (Federal Housing Authority), FannieMae, and FreddieMac will provide financing on REO properties.
If you're interested in buying a REO property
Lenders needing REO services
Los Angeles Branch
Servicing L.A. County
HQ's-2393 Pacer Dr.
Norco, CA 92860
ph: (323)375-9788
fax: (323)927-1673
alt: (323)632-2868
info
