Dating tips

REOs are properties that the lender has failed to sell at auction. At this point, since the home has gone back to the lender, the mortgage no longer exists. The lender also settles such things as evictions, tax liens and homeowners dues. The buyer will also receive the title insurance policies.A bank or mortgage company forecloses on a property. After a few months of legal hassles, the lender finally gets clear title to the property and hires a local real estate agent. Of course, the lender, at this point, wants to try and recover almost all of the money lent on the propertyThe bank will hire a local realtor once the property has already been declared as an REO, to evict tenants , perform inspections to the property and also do minimal repairs on the property. Most banks prefer to sell the property in an "as is " condition.Some foreclosed properties require a lot of repairs. This is one of the reason why an experienced Realtor chooses to buy a property after it was reverted to the bank. Some banks shoulder the cost of repair but most would sell the property on as is condition.Banks do not want to own property, which is not what they are set up for. Basically, an REO is the sign of a bad loan that was given by the bank and the REO is a liability, not an asset. Every month that a bank owns a piece of property means they are losing money.