What happens after a bank buys a foreclosure?
Typically, after a foreclosure the bank that owned the property will retain it as a REO (Real Estate Owned) property and attempt to resell it. Depending on the bank, it may keep it and assign it to an asset manager or outsource it.AuctionThe purpose of a foreclosure auction is to put a property on the table and make it available to investors or other interested purchasers. If no one is willing or able to pay the asking price at auction, the bank will retain the property.AssignmentUpon keeping the property the bank will then assign it to either an in house asset manager, or outsource it to an asset management company. It is their responsibility to oversee the sale of the property.AssignmentMost asset management companies have a preferred list of real estate agents that they will use to place a property for sale. Once they have completed paperwork, including listing agreement and photographs for an REO property, they will assign it to a listing agent.Time FrameIf a listing agent is unabl
