What is the process for buying bank-owned REO properties?
There are two ways in which the property ownership is transferred to the bank, either it is with the help of an agreement with owner or by public auction. The property, in this case as well, usually ends up being sold so that the lender may recover his unpaid loan amount. The lender usually sells the property to recover the unpaid loan amount. But the chances of striking a good bargain reduce considerably at this stage. Banks may take the help of real estate agents or companies specializing in the sale of REO properties or for REO Asset Management.
