Lender Owned/REO's | Lender Owned / REOs |
|
|
|
Lender Owned/REO OpportunitiesLender Owned Properties - also called REOs (Real Estate Owned) has become a very good source of Fix and Flip or Fix and Hold opportunities. Lenders have been forced to foreclose on a property. In the past these properties would have sold at auction, but for some reason they did not sell. Every month that the lender holds these properties adds to increasing expenses and loss revenue, all of this makes for a motivated seller. These propereties have been significantly discounted when offered for sale. In today's market, lenders will often take offers for 10 to 20% below the already discounted listed price. Seasoned Investors like REO's because they don't have to deal with depressed home owners in pre-forclosure, and they often close much faster than Short Sales. These properties are sold "ASIS". Sometime these properties have fix and flip potential, other properties the value is in the land occasionaly the property can be cleaned and painted and be ready for a renter.
|