Making REO Properties Work for You

How to buy reo property

Buying a home is a major milestone in everyone’s life. You work hard, save up, and end up with a place you can truly call your own. Or maybe you’re looking to flip some property, which is a great way to make money. Either way, that’s gotten a lot harder these days. Homes are more expensive than a lot of people’s pay can keep up with, so does that mean you’re out of luck? Not quite. One market that deserves to at least be looked at is that of the bank owned property listing. REO properties are often the best deal you’ll find on today’s market.

What is an reo property? It’s the result of a bank foreclosing on a home. If a home owner defaults on one or more loans and that amount exceeds the value of their home, the bank takes possession of it and it becomes REO. It is then put up on bank REO listings for savvy buyers like you. A common practice is to fix the home up at little cost to you and sell it for a pretty substantial profit. Sounds simple enough, right?

Before you start your own Reo home search, there’s something you should keep in mind. Often, the final bid you make isn’t enough to repay the original loan. Since the final transaction takes place before the lender formally forecloses, you’ll have to do some additional negotiating with both the lender and the owner. This can get tricky, so keep on your toes and don’t let yourself get taken advantage of.

Buying a home from a bank owned property listing can be a great way to save money on a house, or to flip a property for an excellent profit. Just be sure you know what you’re getting yourself into. The main thing lenders care about is getting their money back, and to do that they could try to take advantage of you. Study up on Reo property listings and negotiations, drink an extra cup of coffee, and make the market work for you.

19 thoughts on “Making REO Properties Work for You”

Leave a Comment