Bank Owned Property & REOs
Foreclosed homes or properties seized or repossessed by lenders are known as Bank-owned or REO (Real Estate Owned) properties. These properties can be an affordable option for prospective buyers. You can contact an experienced real estate agent to understand the whole process of buying a bank-owned or REO property. A home becomes a bank-owned or REO (Real Estate Owned) property when:
​
• A borrower fails to meet the mortgage terms or make payments for a certain period.
​
• The lender starts the foreclosure process and issues a legal notice of default to the borrower. If they still have not made the mortgage payment, they get a notice for sale.
• The home or property is sold at public auction unless the borrower clears the payment.
​
• If the home doesn't sell at a public auction, the banks sell it to a real estate investor or a traditional home buyer. In some cases, banks can also take possession of the foreclosed home.
You can find bank-owned and REO properties through real estate agents. But make sure to find an experienced real estate agent with a proven track record in buying REO properties.