"REO" is not a type of Speedwagon, at least not in real estate jargon. REO stands for Real Estate Owned (by a bank or other mortgage underwriting institution). The terms "REO", "bank-owned", and "foreclosure" all mean exactly the same thing: a property to which ownership has been transferred to the underlying lien-hold because the owner on title was unable (or unwilling) to continue making mortgage payments.
It is a common misconception that bank-owned properties are inherently a "good deal". Some are and some aren't. Banks, just like "normal" sellers, make many of the same mistakes when deciding on a price. If they price the property too low, it could be a fantastic bargain. If they price it too high, the property will most likely sit on the market with very little activity. But it would be a huge mistake for any buyer to assume they're getting a good deal, just because they're buying a home directly from a bank.
Banks, unlike people, don't have sympathy. An asset manager who works for the bank, managing their RES "assets" might have a heart, but the bank does not. A bank's primary interest is in the profits of their shareholders, their "bottom line". Banks are also large, well-funded, powerful institutions. When they sell real estate, they insist on playing by their own rules. And unfortunately, they're big enough (and employ enough attorneys) to do exactly that. A buyer can expect the following when trying to buy a bank-owned property:
Charming 1 bed, 1 bath condo conveniently located just minutes from I5 access for quick and easy commutes. Building offers lots of parking space and a great outdoor space...
Listing courtesy of Properties NW of Gig Harbor.
Fabulous top floor corner studio unit in sought after Greenwood. Excellent move-in condition. Features living room with wood burning fireplace & slider to a large deck. B...
Listing courtesy of Windermere Real Estate Co..
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