Speeding Up With REO
“REO companies”, are those who deal exclusively with REO investments. REO” means “Real Estate Owned” properties. REO properties are known as bank REOs, bank owned residential property, foreclosures, etc.
For the past couple of years, foreclosure has been all over the United States. This trend is expected to continue in the next 2-3 years or even longer. This resulted to Foreclosure Property Investment being an industry.
There is a huge number of homes in various stages of foreclosure. This is the reason why a number of companies and businesses are dedicating their time in the acquisition and resale of foreclosed properties all over the country.
These are called “REO companies” or “REO asset management companies”. As foreclosure properties were just beginning to grab headlines, various investors and real estate professionals began to approach banks and lenders for their lists of bank REOs.
When the banks supplied these lists, they also provide the selling prices that they would accept for those homes. At the time, making a foreclosure property investment was basically an informal process done on a bank-by-bank, house-by-house basis. However, that changed when foreclosures began to sweep across the US like a tidal wave.
Banks and other lenders were literally being inundated with foreclosure properties every week and began to seek means to cut their losses and unload these bank REOs. American entrepreneurial spirit, specialized new companies began to take shape.
Several companies consider themselves as REO Asset Management Companies but most of them do not make money in selling foreclosed properties. Most of them do not have the experience, fund, management relations to banks, network of realtors and others. Only those with the above skills become profitable in investing in REO properties.