Question : What's the difference between a regular foreclosure and an REO foreclosure?
I've been looking up foreclosures at the county office to buy a foreclosure (the ones about to be auctioned). Someone said I should be looking at REO foreclosures. What's the difference, and how do I buy one and or get info on these?
- asked by BlackDahlia
All Answers:
Answer #1
In a foreclosure the property is still owned bythe person who is losing it, also called a REPO.In a REO the property is now owned by the bank whoheld the mortgage and is ready to be sold again.
- answered by Luv2Answer
Answer #2
real estate owned properties can be financed whenbought,auction properties cannot.bank/reoproperties can usually be bought for a littleabove or even below ,because the banks dont liketo carry them,pay the insurance etc,so they wantto unload them asap.
- answered by fourofsix2003
Answer #3
As the first answered your question well.Aforeclosure can be paid off by the currenthomeowners if they wish.A Real Estate Ownedforeclosure is already owned by the lender it hasbeen thru the foreclosure process.You can buy ahome at any time thru the process of a home sale.Want to buy a home. Before it goes into a fullblown foreclosure buy it from the current owners.You will assume there current payments andcontinue the payments to the bank. They do notcare where the money comes from. If they call youand tell you that you can not assume the loan tellthem that is fine and you will just refinance onthe current loan and they will lose even moremoney.
- answered by Big Deal Maker
Answer #4
REO means Real Estate Owned (by the bank). It'salready been foreclosed on and bought back by thebank.A regular foreclosure is the process leadingup to the county auction where the property getssold. You can buy it before the auction, or ATthe auction. If the bank wins the bid at theauction, they get the property and it becomes theREO.
- answered by flashinvestments
Answer #5
Step 3 ~ REO = Bank has already foreclosed on thehomeStep 2 ~ County Foreclosure Auctions = Couldbe tax foreclosure or home that bank will be thereto be the highest bidder on a home loandefault.Step 1 ~ Short Sale = Pre-foreclosure (Buyfrom Seller where their bank approves a shortpayoff on their home loan)Foreclosure auctions arethe absolute riskiest way to buy a home. You arenot provided with clear title unless you pay forone prior to attending the auction. Could alsohave tax liens, utility (water & sewer) liens,materialmen/mechanic liens (contractor), unpaidHOA fees, etc.Also, you may not be afforded theopportunity to inspect a home prior to bidding onit at auction. Could be a big nasty bucket ofworms.Buy at Step 1 or 3, never Step 2 unless youare an experienced and seasoned foreclosureinvestor.
- answered by Dawni Do Right
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