In my travels, I get a lot of questions about foreclosures. One of them is, "What does REO stand for?"
REO stand for Real Estate Owned. It refers to a property that has gone back to the lending institution, usually a bank or investor, due to the foreclosure legal process. When the owners no longer have a legal right to possess the property, normally when they have stopped making mortgage payments, the foreclosure process starts.
If the property does not sell at the foreclosure sale (Horry County is the first Monday of every month), the bank or other lender takes the property back. It is then call REO or Real Estate Owned. Banks are not in the real estate business, they are in the lending business, so it is in their best interest to sell that REO as soon as possible and minimize their holding costs which can include, electric, water and sewer, lawn care and other maintenance.
These REO properties have really produced some great deals not only in the Myrtle Beach area but also across the country. Because these REO's sell so low, homeowners are sometimes forced to sell below what they would like to get since the market values keep going down which is going to make 2012 a great time to buy real estate.
Next time I will discuss another reason why it is a great time to buy as well as the first step in the buying process.
Until then, Happy New Year! Let's make 2012 the best year yet!
Call or email me with any feedback or questions.
Chris Kavanagh
ckavanagh@watermarkagents.com
843-655-0711
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