REO Real Estate
Tucson Real Estate has many opportunites to purchase Tucson Foreclosures, Short Sales, Bank Owned or REO Properties.
What is a REO?
REO or Real Estate Owned property is a home that’s been through the foreclosure process and is now held by the lending institution. REO's are different from a foreclosure property in the sense that the bank has already tried to sell it at a foreclosure auction and has not been successful in getting bids. This is common because most of the properties up for sale at foreclosure auctions are worth less than the total amount owed to the bank. The opening bid at a foreclosure auction in most cases is equal to the outstanding loan amount, interest and any other fees owed. Since the home is usually worth less than this amount and no bids are made the bank then became the owner of the property.
REO - Q & A
Is it better to buy an REO or Foreclosure?
When you are thinking of buying an REO you have to distinct advantages that a buyer does not have with a foreclosed property. The first is that you are able to buy on your schedule, as you do not have an auction date to work with and around so you can make an offer on the home any time. Another big advantage of an REO compared to a foreclosed property is that you can inspect it before you buy, when you cannot do this with the majority of foreclosed homes that you think about purchasing. Being able to inspect the property before you buy will let you know how big of a project you will be dealing with.
Q: Are REO's a good deal?
Just because the bank owns a property does not make it a good deal. In fact, when you see that a home or property is an REO you have to wonder exactly what IS wrong with it. The house was not bid on because no one saw the worth in it. Did the home just not have enough equity? Were their IRS liens against it? Was the property just too badly damaged? Is it in a desireable part of town? You need to ask these questions. If the bank cannot answer the questions then you need to be even more skeptical. Take advantage of your right to inspect the REO so that you can see with your own eyes what may or may not be wrong, hire professionals if necessary as well.
Q: Why can banks sell REO's so cheap?
Banks are not set up to deal with real estate. REO homes are often sold by banks at below market values in order to sell quickly. REO homes are expensive for banks to hold because they require maintenance and the bank may have to repay any liens against the property. Because the bank is loosing so much money on each REO, they are willing to sell it fast and cheap.
Featured Listings
