Buying Bank Owned REO Properties

Copyright © 2009 Lex Levinrad The foreclosure crisis has created an unprecedented opportunity to invest in real estate at hugely discounted prices. When a homeowner defaults on their mortgage and goes into foreclosure, the end result is that the house ends up at a foreclosure auction. If no one buys the house at the foreclosure auction, then the house goes back to the bank that originated the mortgage loan. Once the property is returned to the bank, it is known as an REO which stands for real estate owned (by the bank). The bank has a department that specifically deals with REO properties. In this department, there are asset managers, who are responsible for overseeing these bank owned properties. Each house gets assigned by the asset

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