Defaulted properties are a sad fact of any real estate market. Mortgage foreclosures are a multiple-step process, presenting various opportunities for buyers.
When a foreclosure sale is not successful, the lender assumes ownership and the property is now called real estate owned, or simply REO. If you are interested in purchasing an REO property, it’s important to understand several distinctions between REOs and traditional transactions, outlined below:
Each of these factors has important implications for buyers. Before proceeding, it’s best to work with an Accredited Buyer’s Representative who can help you understand your options and decide whether an REO purchase is right for you.