How Does an Reo Sale Work
If the Lender That Took Possession of the Home Can’t Sell the Property at an Auction, Then the Lender Takes over Ownership of the Home. the Lender Then Tries...
If the lender that took possession of the home can’t sell the property at an auction, then the lender takes over ownership of the home. The lender then tries to sell the real estate owned property as quickly as possible. At that point, it becomes an REO property that often stays on the lender’s books for a while.
Who takes ownership of the REO property?
Sometimes, even the highest bid falls short of the amount the lender has to recover. In that case, the lender or bank assumes ownership of the property until it can sell at the desired price.
Is a REO the same as a foreclosure?
An REO (Real Estate Owned) property, also referred to as a bank-owned property, has already gone through the foreclosure process and the mortgage lender or bank has taken ownership of it as a result of a failed foreclosure sale in an auction. The bank becomes the owner of the property.
James Sterling reports on renewable energy developments, climate policy, ecological conservation, and green tech innovations around the globe.
