What is an reo? Real Estate Owned Property

howard

2 years ago

What is an reo?

Want to find foreclosure, Foreclosed, Real Estate Owned, bank owned, Property in Maui, Hawaii? You will find a forclosed homes and condos in Kihei, Kahului, Wailea, Wailuku, Paia, Makawao, Pukalani and Kula.

Some REO properties have dead lawns and are poorly maintained. This is not the case with Howard Dinits’ REO Listings which is why REO Asset managers love listing agents like Howard Dinits. Howard has pride in what he sells so his listings are maintained and sell quickly, often with multiple offers.

What is an reo?

Real estate owned or REO is a class of property owned by a lender, typically a bank after an unsuccessful sale at a foreclosure auction. What goes on at the auction you ask? A bank will typically set the opening bid at a foreclosure auction for at least the outstanding loan amount. If there are no bidders that are interested, then the bank will legally repossess the property. This is usually the case as the amount owed on the home is probably higher than the value of this foreclosure property. As soon as the bank repossess the property, it is listed on their books as REO – Real Estate Owned – and is categorized as an asset.

As soon as a property goes into a default or distressed status (the borrower/home owner misses mortgage payments) the bank will want to determine the amount of equity that the property has. A popular method to determine the equity is to obtain a Broker Price Opinion (BPO) , CMA or order an appraisal. Top selling REO agent in Hawaii servicing the Big Island, Oahu, Kauai, and Maui offers Free BPO’s to all asset managers willing to list their property with RE/MAX Resort Realty and Howard Dinits the top selling agent in their office. Based on the amount of equity that is determined from the BPO, the bank will decide to try for a short sale or to allow it to go through the foreclosure process. If the bank is able to sell the property through a short sale or at a foreclosure auction, then the property will not become a REO property.

After a repossession and the property becomes classified as REO, the bank will go through the process of trying to sell the property on its own or obtain the service of an REO Asset Manager. The bank will remove some of the liens and other expenses on the home and try to resell it to the public, either through future auctions or direct marketing through a real estate broker. Asset Managers looking to contact REO realtors that specialize in zip codes in Hawaii to help sell thei bank owned properties often turn to Howard Dinits because of his 99% BPO to Sales Price ratio. Howard knows how to play the price is right. Generally speaking, bank REO properties are in poor shape in terms of repairs and maintenance; however, real estate investors will often go after these properties as banks are not in the business of owning homes and so, in some cases, the low price can more than compensate for the condition of the property. Investors looking to find fixer uppers often contact Howard Dinits as he is a fantastic buyer’s agent. Howard has helped more than 200 families invest in Hawaii, on all islands Oahu, Big Island, Maui and Kauai.

Once a property is REO, the bank or lender will try to dispose of the property by either selling it directly themselves or through an established business relationship that they have with asset managers and REO agents like Howard Dinits RB.

Many larger banks such as GMAC, Litton, Greentree, Capitol One, Bank of America and Wells Fargo have REO/asset management departments that will often hire Howard Dinits because of his outstanding attention to detaill and 99% BPO to sale price ratio.

All REO properties that Howard Dinits lists are on the open market will be listed in at minimum 2 MLS systems by Howard Dinits the REO Real Estate agent who performed the BPO.

As a listing agent Howard Dinits may be asked to rekey the home, provide Free BPO’s, weekly property inspections, pay any outstanding HOA fees, pay the uility bills, maintain the property, evict the occupant, rekey the property, and most of all sell it in 16 days or less and get multiple offers.