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what is an reo property, are they hard to buy?

  • February 13 2009 - Kansas City
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Answers (7)

Profile picture for workabee
Moldy thread. I hope this AGENT got an answer before now since she posted in Feb. 
  • October 06 2009
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Hi
An REO - meaning Real Estate Owned by a bank is property that already has went through the foreclosure process and the bank now owns the home and is selling the property.  They usually are not hard to buy but you do need a lender  approval letter saying that you qualify for the amount of the offer you are making.  Some REOs do have you use a bank of their choosing and you must use their bank -but that will be spelled out in the MLS (Multiple Listing System) and your agent should be able to assist you with this.  Hope that answered your question.

  • October 06 2009
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Real Estate Owned.

They aren't hard deals to do.  however it is alittle longer process and let your buyers know.  I have negotiate a few and just be patient :) good luck.

a
  • October 06 2009
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I am curious why an agent would ask that question?
  • February 19 2009
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As azrob states, REO stands for Real Estate Owned. We
have about 17,500 listings right now in the Greater Kansas City Metropolitan Area. Of those, around 900 are either bank owned, REO, estate settlements, involved in probate or are otherwise different than a traditional real estate property. I send out lists of foreclosures/REO/bank owned properties to about 5 or 10 people daily.

To purchase an REO in KC, your offer will need to be within 10% of the list price in order for the bank to consider countering. Most of these properties will need work so, if you're handy, you may like to consider one of these. Another option is Auctions. At auction, you will need to register in advance and have your financing in order or a cashiers check ready. Buyers pay a 10% commission at auctions so be sure to include that in your budget.

Whichever non-traditional method you choose, be sure to take your buyers agent with you before looking at the homes or talking about your plans to purchase. There are particular pitfalls to be wary of in each scenario and you will not want to make an error from which you cannot recover.
  • February 19 2009
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Profile picture for Trump Junior

Not so easy to buy if you want to by-pass the realtor and buy directly from bank.  But that is what would make it more fun and challenging!  It's not my thread but I'd like to hear from anyone who has done that.

  • February 13 2009
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REO = Real Estate Owned, its what banks call a property they have taken back, ie a foreclosed home. In phoneix they are pretty easy to find, through a rock over your shoulder and it will probably hit one!

Any KC agent can easily search REO properties on the local MLS. They are not very hard to buy, just slightly more tedious than a normally owned home.
  • February 13 2009
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