Where to Find REO Properties

If a homeowner doesn’t make timely mortgage payments, the mortgage lender can foreclose on the property. The home is then sold at public auction. If the bank’s minimum bid for the property isn’t reached at auction, the bank becomes the unhappy property owner. REOs, or real estate owned properties, may represent financial opportunities for experienced buyers with property assessment skills. Here are some of the ways that investors identify potential REO investments:

Fannie Mae, Freddie Mac, and HUD

Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) may list REO properties. Both agencies work with mortgage loan providers. When lenders become property owners, they want to dispose of the properties as soon as possible without a massive loss of capital. The U.S. Department of Housing & Urban Development (HUD) also lists REO properties for sale. When a property with Federal Housing Administration insurance (FHA) is foreclosed upon, HUD may acquire the property. It’s possible to search REOs by zip code or state location.

Bank Branch Networks

Banks and other financial institutions also maintain lists of their REO property investments. They may list properties by county or city location. Some banks with a large branch network offer complete lists of REOs. Prospective investors can sometimes access a larger array of REOs this way.

Small Banks

Some small banks or credit unions also have REOs for sale. These small lenders may have much less capital available to “invest” in properties as a result. This fact can play to the buyer’s advantage when bidding for REO properties.


 

Realty ONE Group has over 5,000 associates spread out across its offices. With headquarters in Irvine, Realty ONE Group is one of America’s top real estate brokerages as rated by REAL Trends. Kuba Jewgieniew is the CEO of Realty ONE Group, and a seasoned real estate professional.