Important terms to know:
Properties owned by a lending institution (also referred to as real estate owned or REO) and often sold through auctions with the assistance of a real estate agent. These properties have gone through the foreclosure process, failed to find a buyer during the foreclosure auction event, and are re-valued at an amount acceptable to the lending institution but that also encourages a sale.
How do bank-owned properties work?
These kinds of properties are often sold “as is” and can be great for buyers. The lending institution wants a hassle-free process and is motivated to make a quick, seamless sale.
Properties under this category are great for first-time buyers because they can come with a number of guarantees. Namely, the lending institution will typically provide a clear (or clean) title, title insurance, and confirmation of the property's occupation status.
Buyers are able to visit vacant properties through an open house or private tour before an auction. Bank-owned properties can often be financed or paid for in cash.
Quick info on bank-owned properties
|Financing or cash-only:||Typically both|
|Inspection or sight unseen:||Inspection, if the property is vacant|
|Property types:||Residential (single family, multi-family, modular, mobile), commercial, land, manufacturing, logging|
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