Buy An REO Property In Shreveport
Everybody wants a good deal, especially when you’re looking to buy a house. Sometimes an REO property is exactly that kind of deal. But what is an REO, anyway? REO stands for Real Estate Owned, and it refers to a property that’s been seized by a lender when the former owner can’t pay the mortgage.
After foreclosure happens, banks will often try to sell the property at a foreclosure auction. If it doesn’t sell during the auction, it becomes an REO property. From there, you swoop in and get an awesome house at a great price, right? Not exactly. First, REO properties are frequently sold “as-is,” so the property may need anything from a fresh coat of paint to major structural repairs. Next, making an offer can be tricky, as you’ll need to be willing to buy the house regardless of its condition, and you’ll want an escape clause to let you out in case the place is a disaster. Along with all that, you shouldn’t necessarily expect the pricing to be a steal, either.
As you can see, dealing with an REO property is tricky, which is why the smart move is to partner with a REALTOR® that thoroughly understands their details. Since 2010, I have been heavily involved in numerous aspects of the real estate industry, including REO’s, short sales, and home buying and selling. Want to ensure you have the guidance you need?