subject: 3 Important Facts About Reo Foreclosures [print this page] First time investors and buyers understand there are plenty of risks involved when they make the decision to plunge into foreclosure investing. With the many types of foreclosed properties, it would be easy to get confused. To avoid getting burned on your first investment, you should consider REO foreclosures.
Compared to other foreclosed houses, real estate owned foreclosures are now under the ownership of the lender who repossessed the property in the first place from the original owner. These homes have already gone through the other foreclosure stages namely pre foreclosure and foreclosure at auction and are now listed in the banks inventory.
Because banks typically do not want to hold on to real estate properties which are deemed as non-performing assets, you can expect them to offer huge discounts and impressive incentives just to attract buyers.
REO foreclosures are also found easily. You simply check a banks listing of foreclosed homes and you can take your pick. Of course, this only works if you prefer dealing with a particular bank. If you want to enjoy a larger selection of bank foreclosures, you can always subscribe to really good foreclosure lists. These lists are actually good at providing buyers with updated and complete information which in turn allow the buyers to make up their minds easily.
Again, if you are working with a small budget, you will find these bank foreclosures to be practical. If you are worried about the physical condition of the property, you can always negotiate with the bank or seller for additional discounts. As long as you can provide proof of how much you would spend in repair, you will be surprised at just how much banks can accommodate.
Lastly, REO foreclosures are perfect if you have good credit standing. You can apply for a mortgage loan with the selling bank and you can even further negotiate the loan terms to your advantage. Most banks will be more than happy to work with you until both of you are satisfied with the terms or the mortgage.
