There seems to be a lot of confusion out there as to just exactly what is a Real Estate Owned Property. Some agents, when listing properties owned, in good standing, by the seller, are checking the Real Estate Owned box on the listing input form because they don’t understand what REO encompasses.
Let’s clarify this once and for all . . . Real Estate Owned, or REO, properties are distressed properties that are owned by the lender — typically a bank, government agency or government loan insurer — after an unsuccessful sale at a foreclosure auction. Think foreclosures, sheriff sales and defaults.
If you, as an agent, are listing an REO property, you will be dealing with the lender’s representative like their real estate department or attorneys. And for those of you who deal with distressed properties, you know that these representatives are in no hurry to respond to an offer! So educate your buyers, too, should they decide to pursue an REO property!
Let’s recap . . . a Real Estate Owned property, also known as REO or Bank Owned property, is not your standard owner-occupied property. Let’s be diligent about our knowledge and not misrepresent.
Nancy Sarley, Berkshire Hathaway HomeServices HomeSale Realty
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