REO Neighborhood 911

by Lance Kettler

As distraught home owners are being devastated by the reality of their ARM loans resetting, more and more homes are slipping into foreclosure.  Over half of the homes that are foreclosed upon are bypassed at auction and are reverting back to bank ownership.  These properties are known as REO (Real Estate Owned). As the supply of these lender owned properties grows more and more neighborhoods are finding themselves with a real problem.

When a house becomes an REO it will sit empty until a buyer makes an offer and a deal can be struck.  In times past this was an inconvenience, but with the glut of REOs on the market it has become a neighborhood problem.  With so many properties to look after banks do not have the time to maintain the homes and do necessary upkeep.  Lawns are becoming unkempt, swimming pools are growing mold and attracting mosquitoes.  In some cases vandalism is becoming prevalent.  The problem is big and growing bigger.

There is a silver lining, however.  We are seeing that banks, overwhelmed as they are by the sheer weight of maintaining these properties are willing to make deals that are attractive to qualified buyers.  Offers that even a few months ago were scoffed at are now being entertained and even accepted. If you are interested in buying a home or investing in real estate, there is no moment like the present.  Purchase REO and get the deal of the century while helping a neighborhood return to normalcy.

 

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