| Bank-owned foreclosures, also known as REOs | | | | strong credit history and a solid financial data, you |
| (real-estate owned), are generally regarded as safe | | | | can even negotiate for a lower down payment and |
| properties to invest in. This could be attributed to the | | | | interest rate. |
| long-held trust for bank institutions and lenders to | | | | If you are an investor looking for properties to flip |
| whom we entrust our life savings. When a property | | | | for a resale profit, REOs are great options since you |
| owner defaults on his mortgage payments, the bank | | | | could buy them at lower rates than their actual |
| will start the foreclosure process and try to sell the | | | | market value. This is because banks generally would |
| property in an auction. If the house remains unsold | | | | want to avoid having a large inventory of |
| after the auction, it reverts back to the bank as an | | | | non-performing assets in their portfolio as these |
| REO. This creates favorable opportunities for those | | | | would eat up valuable resources in terms of |
| who would like to invest safely in the real estate. If | | | | maintenance costs and property taxes. Also, an |
| you want to jumpstart your real estate career, these | | | | increased number of foreclosures in their yard would |
| are the essential information that you need to know | | | | send off the signal that the bank has been making a |
| to further understand the industry. | | | | lot of bad lending decisions that could affect its |
| Clean Titles | | | | performance and client base. |
| One of the top reasons why investors and first-time | | | | As-Is Condition |
| home buyers prefer REO properties over the other | | | | Bank-owned foreclosures usually come in as-is |
| types of properties is that they come with clean, | | | | condition which means that you purchase them at |
| good titles. Banks are capable of providing you with | | | | the condition and state that they are in at the time |
| lien-free titles. When you deal with bank-owned | | | | of the sale. To avoid running into problems later with |
| properties, the risk of running into dubious property | | | | renovation and repair costs, you might want to |
| titles is greatly reduced. These institutions can | | | | conduct an inspection of the property before you |
| guarantee you a secure and risk-free transaction. | | | | sign any contract. A personal inspection will afford |
| Financing Options and Profit Potential | | | | the opportunity to see for yourself the general state |
| When dealing with bank-owned foreclosures, you can | | | | of the property as well as the overall well-being of |
| choose from a variety of financing schemes one that | | | | the neighborhood. |
| suits your budget and preference. If you can show a | | | | |