Buying REO Homes

If a property does not sell at a foreclosure auction (as discussed in previous post), it reverts back to the bank and becomes REO (real estate owned). The banks do not want to have a large number of homes in inventory, they want to sell them quickly, recoup some of their losses and move on with their normal business of banking. Since they were not able to sell the property for the minimum bid they set at auction, they will usually reduce the price when they list it for sale as an REO.

Things to remember when buying REO property:

There is no minimum bid (unlike foreclosure auction).
REO property can and should be inspected.
REO property is vacant, no need to deal with eviction of occupant,
REO property might require additional repairs after purchase, adjust offer.
All liens are removed from property.

As you can see, there are a lot of advantages in buying an REO property. There are a growing number of REO homes in Chino Hills and the surrounding area. This can be a good way to find a great deal in the current real estate market. In our next post we will review another type of property you may or may not want to consider when searching for your next home, the "Short Sale".