Buyers hunting for bargains have a number of options these days, which range from foreclosure auctions to short sales (lenders accepting less than the total mortgage amount due). In addition, there are instances in which a bank attempts to sell a home after an unsuccessful sale at a foreclosure auction. This is a common occurrence because most “real estate owned” (REO) properties are worth less than the total amount owed the bank, and the minimum bid at most foreclosure auctions only equals the outstanding loan amount. However, there are also accrued interest and fees associated with a fore-closure sale. When the bank then attempts to sell the REO property on its own, it may remove some liens and other expenses.
Your ERA Central agent will be able to guide you through purchasing a short sale or REO property. Contact us to be connected to a member of our team experienced in distresssed properties.
Expert tip: While REO properties may be priced low, they also may have been unoccupied for long periods. If so, a professional home inspection becomes all the more important.