REO stands for Real Estate Owned. Also Known As "Bank-Owned"
REO usually refers to properties
that are owned by lenders or mortgage servicers after foreclosure has taken place. REO home sales are usually handled
differently than standard real estate transactions. Lenders may have their own set of guidelines regarding the
terms and timing of a sale. They may also have their own paperwork which might include a purchase & sale agreement
and specific addendums. It is best to work closely with a real estate professional and attorney to help you sort
through the documents you may encounter if you decide to purchase a bank-owned home.
REO can also refer to real
estate owned by homeowners, either owner-occupied homes or investment properties. You might hear the term "Schedule
of REO" which is, basically, a list containing the details of all the real estate owned by an individual or
organization including addresses, mortgage amounts, and other pertinent information.
We recommend working with
a real estate attorney and licensed real estate company when dealing with bank-owned or REO homes. Please contact our
affiliate company, Quinsigamond Realty, at www.QuinsigRealty.com for more information about real estate sales.
