How are REO properties different from foreclosures?
Perhaps the most important difference for buyers is the price. The price of foreclosure properties includes the amount of the outstanding loan, the accrued interest, attorney fees, and any other costs associated with the foreclosure sale. The price of REO properties, however, excludes some of the mortgage liens and expenses on the property. When selling an REO home, banks are willing to go below the original loan amount to avoid having to maintain the property themselves.
Related Questions
- Are there different rules for foreclosures on investment properties in California as opposed to primary residences?
- What is the difference between Outer Banks Foreclosures, Bank Owned Properties (or REO) & Short Sales?
- How can I find an agent who specializes in foreclosures, REOs and banked-owned properties?
