REO Properties

What does the word REO stand for? The answer is, Real Estate Owned. A REO property is a property that is now owned by the lender and has gone through the foreclosure process. REO’s are a repeated topic of conversation in the real estate world. With the markets latest conditions and foreclosures on the rise more and more properties are going back to the banks and becoming REO’s. Some banks have so many REO’s that without help of latest $700 billion dollar bailout proposal getting passed, some expert’s say they will go out of business before the end of the year. A property becomes an REO after the trustee sale occurs (auction); if no one bids on the property with acceptable terms the bank recovers the asset and starts a new process of selling it though local real estate experts. Typically, the trustee sale happens ninety days after the house is filed for foreclosure. T he ninety day process is called pre-foreclosure this is an opportunity for the seller to either reinstate their loan, complete a loan modification (reduce the terms of the loan for lower payments) or do a short sale. A short sale is the process of negotiating the balance of a loan so the house can be sold in this market.

REO’s and Short Sales are a perfect opportunity for buyers looking to buy investment properties, 2nd or 3rd home or use as a personal residence. Scottsdale.com and The Southwest Realty Team has designated teams that focus on each type of transaction. The REO department focuses on acquiring deals directly from national and local lenders that have properties on their books. With the efforts of this department Scottsdale.com has gained access to hundreds of Real Estate Owned properties at large discounts. We are able to pass the savings to our buyers and investors. Every REO deal is different depending on the location, condition, lender involved and other determining factors, contact one of sales agents to get more details on how you can get involved with REO deals.