FAQs

What does REO mean? REO is an acronym for Real Estate Owned.   Is there an advantage in buying a REO property?  Oftentimes you can get a great bargain. The lender is now the owner and has much more room to negotiate than a homeowner who is trying to satisfy his mortgage payoff and make a profit!   Are these homes for auction or are they for sale on the MLS?  These homes have already been through the foreclosure auction process and were not sold. They are for sale and the prices are advertised.   Are these homes in good condition?  The homes are always cleaned with all personal items and debris removed from the house. They are however sold "As-Is".   Can the homes be inspected?  Sure! Just because they are sold "As-Is" doesn't mean you don't have the right to know what you're buying. You can inspect the home at your expense and know what condition it is in. In most cases however the owner will not pay for any repair items.   Can I get a disclosure from owner telling me what may be wrong with the house?  In most cases the answer is "No". Remember these homes were reverted back to the lender and even though they are the owner they have never lived in the house and can make no representations.   Would a foreclosure be a better bargain?   Not necessarily. You usually don't have the opportunity to inspect a foreclosure and you rarely know what condition the home is in. These REOs are open for inspection. At a foreclosure auction the lender hopes to get the mortgage satisfied. This may not happen and the property reverts to the lender. Now the lender is very motivated to sell the property and there is a great opportunity to get a better price than at auction. The homes are priced according to current market conditions and priced to sell.