An REO (Real Estate Owned) is a property that goes back to the mortgage company after an unsuccessful foreclosure auction. You see, most foreclosure auctions do not even result in bids. After all, if there was enough equity in the property to satisfy the loan, the owner would have probably sold the property and paid off the bank. That is why the property ends up at a foreclosure or trustee sale. As an REO, the bank now owns the property and the mortgage loan no longer exists. The bank will handle the eviction, if necessary, and may do some repairs. They will negotiate with the IRS for removal of tax liens and pay off any homeowner’s association dues. As a purchaser of an REO property, the buyer will receive a title insurance policy and the opportunity to investigate the property. Whether you are interested in buying an REO property for yourself, or to possibly “flip” to make a profit, it is important to have a legal professional consult and assist you during the buying and closing process to ensure you stay legally protected.
Call us if you need a consultation to discuss our legal services. We are ready to help you with any of your legal needs.