What is an REO?
An REO is “real estate owned” by the mortgagee, usually a property that was not sold at the foreclosure auction to a bidder and was therefore acquired or “taken back” by the lender. Since lenders are not in the business of managing real estate, they are willing to sell REOs quickly to interested homebuyers or investors. REOs are sometimes called “special” or “non-performing” assets to distinguish them from properties that are owned and actually used by the lenders, such as corporate facilities or branch offices. • How do I find REOs? Many people find REOs by following the properties through the stages of the foreclosure process (i.e., preforeclosure to auction property to REO) or by contacting the lenders REO or Special Assets departments. Some lenders establish relationships with local Realtors® who manage and market the REOs for sale to the public. You may be directed by the lenders to contact these real estate brokers or agents to find out about available properties. Of course, we k
