Considering a Bank-Owned Home? Here’s What You Should Know
If you're thinking about buying a home that's owned by a bank, it's important to understand what that really means. These properties are often called REO homes, short for "Real Estate Owned." Sometimes, these homes are still occupied by the previous owners or tenants, which can make the process a bit more complicated.
Bank-owned homes can be a great deal and might cost less than similar properties on the market. But there are a few hurdles to be aware of. Knowing what to expect—and how the process works—can help you make a smart, informed decision.
00:03If you're shopping for a home, you might come across the term REO.
00:08It stands for real estate owned, which means the property is owned by a bank after the previous owner failed to keep up with their mortgage payments.
00:15When no one buys the home at foreclosure auction, the bank takes possession, and it becomes an REO property.
00:22Sometimes, these homes are labeled REO occupied, meaning someone is still living in the house, either the former owner, a tenant, or even a squatter.
00:32Buying an REO occupied property can be complicated.
00:34You might not be able to tour the home, the condition could be uncertain, and the bank may need to go through legal steps to remove the current occupants.
00:43However, there are upsides.
00:45These homes often cost less, have clear titles, and face less buyer competition.
00:50If you're considering an REO occupied home, work with an experienced real estate agent, be patient with the process, and set aside money for repairs.
01:00REO Homes can be a smart investment, but it's important to understand what you're getting into before making an offer.
01:07Visit Lengo.com for all your home buying tips.
