What is a Bank Owned (REO) Property?
A Bank Owned (or REO) property means that the former homeowner went all the way through the foreclosure process and the home was foreclosed on and now the bank owns it. Since banks are not in the business of “owning property” these homes are often “fire-sold” for under market value. Banks usually dump properties for less than market value. In our neighborhood, specifically, we saw a bank-owned property sell for almost $50k less than what comparable homes were selling for. Competing on price, alone, against a Bank Owned property when selling your home can be extremely difficult. However, there are other ways to overcome this hurdle.
