REO and Bank Owned Property
REO (Bank Owned Properties), the bank becomes the legal property owner through result of foreclosure.
When a borrower fails to make his/her payments for several months continuously, the bank will start a foreclosure process. This process has 3 steps. 1) Pre- Foreclosure (NOD, LIS), 2) Auction (NTS, NFS), 3) Bank Owned Properties (REO)
REO is final step of foreclosure process meaning property is now goes back to the mortgage company after an unsuccessful foreclosure auction. The property is now considered a non-performing asset of the bank.
Banks are primarily in the business of lending money and are not in the business of managing real estate nor the disposition of real property. Therefore, banks are so eager and anxious to sell their bank foreclosure inventory. Their goal is to quickly recoup their non-performing investment. Instead of holding onto this entire non-performing asset, they‘re willing to negotiate the terms and conditions, then sell it at the value to their satisfaction.
If you are interested in REO properties, give us a call @ 650-553-9099 or e-mail your inquiry to firstname.lastname@example.org.