What Can You Expect When Purchasing an REO Property?
So you’re thinking about buying REO property? REO property can be a great option, particularly if you are a fist time home buyer on a tight budget. But before you make the big decision, you should consider the fact and prepare yourself for what is involved in purchasing REO property. What exactly is REO? An REO is a property that has been foreclosed, auctioned unsuccessfully and has returned to the ownership of the lender. The majority of homes that come up for auction do not have enough equity in them to meet the mortgage obligation of the borrower. This is usually why the property is foreclosed. The minimum bid at a foreclosure auction is the amount owed to the lender by the borrower, plus outstanding interest, and other fees and costs pertaining to the foreclosure process. This is amount is invariably higher than what the property is worth. Moreover, a successful bidder in a foreclosure needs to have the bid amount in cash and also has to take possession of the property in its curre
