REO By definition stands for “Real Estate Owned”. Simply, an REO property is a foreclosure the original lending institution now owns. An REO listing is a property that has been foreclosed on by the lender and has been through an unsuccessful sale at a foreclosure auction.
This usually occurs when a bank starts the opening bid higher than the market price for that given property. This typically happens because the lien owed to the bank is higher than the homes current market value. Once the bank or lending institution remains the highest bidder, the property is repossessed and listed for sale as a Real estate Owned. The property is then categorized as a non-performing asset on the banks books.
Although December is just half way through nearly 350 new Bank properties have been listed in the Denver Metro area. That’s nearly 75 more homes listed compared to the previous year.
If you are in the market to buy a new house in Denver or are thinking about investing in real estate, an bank owned property is a valuable option. Real estate from bank foreclosure properties are known for their competitive price tags within the Denver Real Estate market and can be a powerful source of instant equity.
Another advantage of purchasing an bank owned foreclosed homes is the ease and convenience of the transaction. In fact, the bank is responsible for clearing the liens against the property before you assume ownership. A typical bank owned home transaction takes around 30-45 day to close and the majority of that time is dedicated to preparing the buyers financing.
Truthfully, not all bank owned foreclosures require extensive repair and renovation. Many homes in the $300k+ price range are in great move in shape. On average, theses foreclosed properties below $300k may need basic cosmetic repairs. Still
others are handyman specials and are ideal for someone looking to instantly increase value through renovation and repair – these are generally priced to sell.
If you want to learn more about REO properties or want a list of REO properties for sale in your area just sign up here and Armstrong Denver Real Estate Services will email you new listings in your area.
Learn more about real estate deals in Denver and making profits on Denver REO properties. There are still great deals on Denver real estate and tips on prices and downpayments