Texas Land Attorney

REO Growing Inventories = Good Buys?

With the surge in foreclosures over the last year, Mortgage companies are beginning to gain large amounts of property. When property is sold at foreclosure, the Mortgage lender typically bids at or near the loan payoff amount. With historically poor underwriting decisions, lenders are now finding that many foreclosed properties do not have a fair market value equal to that owed.

When property is moved into a lender’s portfolio, it is referred to as Real Estate Owned (REO). As inventories grow, prices tend to fall. Currently, many lenders are being forced to take losses in order to move properties from their portfolio.

To find REO properties in your area, there are several avenues. Most Realtors can obtain this information through MLS. Also, you can consult the REO portion of each lender’s website. Below are some of the larger selections:

Countrywide
Bank of America
Fannie Mae
CitiMortgage

For a complete listing of REO properties, you should consult a local Realtor.