Frequently Asked Questions – Regarding REO Properties What is an REO property?
It stands for “Real Estate Owned”, also known as “Bank Owned”, “Repo”, or “Foreclosure”. It refers to an accounting line item on a banks asset information. It is property that the bank owns, or is holding as an asset. In this case the bank owns the property. You can easily determine what the bank paid for the property by looking up the tax record and looking at the last sale amount. How low is the bank willing to go? Not as low as most people think. The bank knows from experience that if they offer the property at a reasonable price or just slightly below market value (depending on the condition of the home) they will invariably get an offer at or close to what they are asking in a reasonable amount of time. Your buyer can offer as low as they wish, but the bank will often ignore “low ball” offers and in fact are not required to even give a response back to the buyer at all. My suggestion is to make your best offer if you want the bank to accept your offer or at least counter it. Just
