What Is a Bank Owned House?
Bank owned homes are also commonly referred to as Real Estate Owned, or REO’s. Bank owned means that the lender who held the mortgage on the property has taken title to the property via the foreclosure process. Once the lender has title, they will list the property for sale on the open market, typically via a real estate agent. They need the guidance of realtors for local market conditions, pricing, and knowledge of transactions in any given area.
Buying a foreclosed bank owned property can be a daunting, complicated process, but the payoffs can be substantial. Investors have know this for years, but first time buyers can also take advantage of the savings.