How much time is left before we lose our home? It’s already too late for most of us. If only we had sold a couple REOs per month–we might have made it.

We’ve been trying since last September to get into the the REO market as selling agents. We’ve sent many broker application packages to the REO companies, and were even pre-approved by a couple of them (for a $200 fee).

Who are these REO companies? Asset managers hired by investors or lenders to sell foreclosed properties go to the REO companies’ website.

These companies will take applications from real estate agents. They’ll check to make sure that we’re licensed and have the necessary insurance. They’ll ask if we have REO training and certification. If not, they’ll try to sell us theirs.

Read the rest of this entry

Related Blogs

Read the rest of this entry

Copyright (c) 2009 Duncan Wierman

As the U.S. economy struggles to make a comeback, the real estate foreclosure market is still a ripe place for wealthy investors to do what they do best. Unfortunately, foreclosed homes are at an all time high, thus creating an environment for savvy investors to make a tremendous profit. Because there is such an expanding surplus of foreclosed properties, a new investment opportunity known as bulk REO investing has gained popularity as many scramble to seize this very lucrative investing moment.

REO stands for Real Estate Owned. Bulk REO investing may be a relatively new description, but it is based on an old concept: buying multiple foreclosed properties. To understand how this investing niche works, it’s important to first understand a little about the foreclosure market and why it’s such a rewarding opportunity for investors.

When a property owner fails to pay their mortgage payments, the bank or lender that owns the mortgage takes possession of the property. Depending upon who the lender is, homeowners are sometimes able to modify their loan payments in an attempt to catch up on their arrearages and continue to occupy their home. However, with a record number of jobs being currently being lost and a trend that has left many homeowners actually owing more on their homes than the properties are currently worth, many property owners are either unable to negotiate new terms with their lender or they do not feel that the home is worth the current mortgage price and they simply stop making their payments. The ensuing foreclosure process ultimately means that the property reverts back to the lender in these cases.

Read the rest of this entry

Buying bank owned properties is your first step towards financial freedom. These affordable houses can help you build a real estate empire that would last a lifetime. But if you don’t know how to take advantage of such investment properties, then you’re just throwing your money down the drain.

Here are some helpful tips on investing in bank owned homes or real estate owned properties (REOs.)

Buying bank owned properties can be your ticket to success, so if you want to learn more about these amazing houses, log on to www.REIWired.com

Read the rest of this entry

In real estate investing, it will always help of you had access to REO listings. If you haven’t heard of REOs and you’re an investor that only means two things. One is you have been living in a cave for years now and two; you are missing a very rare opportunity to rake in huge money through these properties. Just why is this three-letter acronym important for you? Read on and be enlightened.

REO stands for real estate owned by lender. Real estate owned properties are very hot in today’s market. They are literally selling like hotcakes. There are various reasons why investors are snapping up these properties, which are also known as bank owned homes.  They are preferred properties because of their convenience and prices. To understand why they are convenient and cheap, it is imperative to understand house a house becomes bank owned.

Houses that are found in REO listings are properties that were repossessed by lenders from home buyers who were not able to update mortgage payments. The properties have already undergone a short sale and a foreclosure auction. And because they have gone through foreclosure, their titles are now clean of liens and claims. Investors like this feature because it lessens the paper work they have to do. Buying bank owned homes, as far as the title is concerned, is like buying a new home.

Read the rest of this entry

Purchasing distressed houses for sale can bring in a lot of savings, particularly for buyers who have planned well and have studied the market of distressed dwellings carefully. There are several ways by which such properties are sold and it is up to the buyer to decide which one suits him best.

The Process of Short Sale

One option available to home buyers is a short sale. Distressed dwellings can be purchased using this procedure if a home owner is facing the possibility of getting foreclosed but has yet to have his property sold at an auction. Under this process, the lender should agree to sell the residence for a price that is less than the amount owed by the homeowner to them.

Read the rest of this entry

A common misconception that people outside of the real estate industry make believes that foreclosure and an REO purchase is the same thing. Although they are similar, they are in fact different; more precisely they are corollaries of each other, with an REO being a direct result of a failed foreclosure sale. To understand the difference between the two and how they vary from each other it is best to define what each is, and their respective merits. The term Real Estate Owned propriety is sometimes used ambiguously, but has a specific meaning in the real estate industry; a property that has been fore-closured on by a bank or Loan company and has reverted back to the ownership of the lender. So as already explained above an REO is the result of property that has been foreclosed on, and is produced only as a result of a failed foreclosure sale. Knowing that an REO is the result of a foreclosure leads us to wonder what foreclosure is, what are the benefits of buying a house that has been foreclosed on and what are the reasons why they fail to find a buyer.Under the terms of foreclosure a bank or Loan Company reposes the property due to the tenants inability to continue with payments on their loan; that they used to purchase the property the first instance. Once the foreclosure notice has been issued and foreclosure has started the bank or Loan Company legally has the right to sell the property; regardless of whether the tenants haven’t moved out yet. In order to purchase a property in a foreclosure sale there are a number of items that the bidder needs to successfully complete. Firstly the buyer has to submit a minimum bid that includes the following: The loan balance on the property, all accrued interest on the property, Attorneys fees, and all costs associated with the foreclosure process. Regardless of the above, in order to bid at foreclosure the buyer must also have a cashier’s check in hand for the full amount of the bid. If the buyers is successful then they will be offered the house in its ‘as is’ condition; complete with tenants who need evicting and liens secured on the property. Because of all the difficulties and lack of concrete benefits in buying at foreclosure, most people who want to buy a foreclosed property will go through the REO route. The REO method of purchase offers much more benefits, incentives and less stress than the foreclosure method. When a bank or Loan company takes back a property they then have the property listed as a sellable asset on their books. The role of the bank is to maximize the wealth of its shareholders. If the bank owned property in Livingston County, Michigan can be sold to release cash to invest, then this is the main motive for the bank or Loan Company; sell the property and invest the cash.

What is a Foreclosure?

A home in foreclosure happens when the owner has stopped making mortgage payments and the lender has given notice that unless the payments are brought up to date, it will take back the property.  Lenders can foreclose for other reasons, but the most common reason lenders file a notice of default is when a borrower is at least two – three payments behind.

If the home owner does not bring the loan current, the lender will take back the property as collateral from the owner. Once the lender has take over ownership the property now becomes a Bank REO.  Banks will then list the property with an REO agent to market the home for sale.  Since banks are not in the business of owing and maintianing property, it is there goal to sell as fast as possible. Search Foreclosures Here

What are REOs – Real Estate Owned?

Read the rest of this entry

By the fourth quarter of 2012, 9 to 50 percent of the house sales will be comprised by the bank owned properties in the six biggest markets in the country. This has been speculated the JPMorgan Chase analysts. In Phoenix, it is expected that the percentage will go up to 39 to 50 percent of all its house sales in the last quarter of this year, which is higher than the 37 percent of last quarter of 2009. REOs would comprise the 24 to 31 percent of the total home sale in 2012 in San Diego where as in 2009 the 25 percent of all the home sales were owned by banks.

In the next couple of years, it is expected that the New York City will be observing an increase in the distressed property listings. In 2012, more than 12 to 16 percent of the total home sales would be foreclosure sales. It will be of the same level or higher than the 12 percent of REO share in 2009.

The housing markets of the California cities such as Oakland, San Francisco and Santa Ana is expected to remain in the same level as their current REO sale percentages. Santa Ana, which is expected to have 18 to 23 percent of their total home sales are from bank owned house listings, had 30 percent REO sale in the second quarter of last year.

Read the rest of this entry

REO is a common term in the real estate market. It is the abbreviation for Real Estate Owned. The term seems to refer to any property. However, this is used to identify properties that were not sold during the foreclosure sale. This also means that there will not be an REO if the foreclosure sale is successful. The lender repossesses this property after failing to find a buyer.

You might ask why people invest in REOs. After all, no one seemed to want it during the auction. Although this is the case, most REOs are in good condition. The only problem that most REOs face is that the previous owner could no longer afford to pay the mortgage. And besides, your decision to purchase a property should be based on the different factors of choosing a home and not on whether it is foreclosed or REO.

However, investing in REO is a good thing. This is because of the several benefits you can enjoy. After knowing the benefits, people change the way they perceive REO. After all, they are not problematic. Additionally, purchasing one has many advantages. Some of them are indicated below.

Read the rest of this entry