DEFINITION FORECLOSURE REO
REO is one of the oddest acronyms used by the real estate industry. The Definition Foreclosure REO is REAL ESTATE OWNED. The term is used to define property that was foreclosed by a financial intuition. A foreclosure occurs when the property owner fails to meet the terms of the loan. In short, the owner did not pay the loan payment for a very long time.
The Foreclosure REO Definition does not make any sense to most people. The acronym was originally called OREO stands for OTHER REAL ESTATE OWNED. It was later shorted to REO, which is the term or acronym used today.
Why did they call it an OREO?
Most banks primary business is lending. An OREO is not part of the lending business. So the property owned is known as other real estate owned. It is real estate property that is owned by the financial institution, but is not directly related to that lenders business.
What is a Foreclosure REO? Also Know as Bank Owned
Foreclosure is the legal and professional proceeding. A mortgagee, or other lien holder, usually a lender, obtains a court ordered termination of a mortgagor’s equitable right of redemption. The lender commonly owns a foreclosed property, which is why it is called bank owned.
How does an Foreclosure REO differ from a Regular sale?
Buying a REO foreclosed home from a lender is similar to a normal real estate sale. However, lenders often will not sign or provide all of the disclosures. Many foreclosed homes are sold AS-IS. So, I would suggest getting a professional inspection, as it is impossible to get the lender/seller to pay for any repairs or major problems after the property closes escrow. You will normally have 17 days to inspect the home before you have to commit to forfeit your earnest money deposit (EMD).
There are a few Central Coast Foreclosures REO Homes for Sale, but because prices are going up, there are very few today.