An REO or Real Estate Owned property is a home that’s been through the foreclosure process  and is now held by the lending institution. When borrowers default on their monthly mortgage payments, lenders will start foreclosure  proceedings beginning with the notice of default, through the pre-foreclosure stage and into the final foreclosure step of the bank taking possession of the home, or REO.

REO homes are often sold by banks at below market values in order to sell quickly. REO homes are expensive for banks to hold because they require maintenance and the bank may have to repay any liens against the property.

REO homes can be a great option for anyone looking to buy a home because of the potential for savings. Being an REO, potential buyers have the ability to see the property and even ask for closing costs to be paid for by the bank. In any case, home buyers should work with an agent to have a Comparative Market Analysis conducted to make sure they are purchasing the home for the right price.

REO’s are also a lot easier of a transaction than a short sale.  REO’s usually take about 30 days from start to finish where as, a short sale can take a minimum of 3 months.

There are many REO’s and bank owned homes in Salt Lake City, UT.  So no matter where you are looking I will be able to find you an REO to purchase.