IMAX Premier’s experienced and highly-skilled asset managers make our REO services the best in the region. We are experts in redemption and eviction processes. We employ property operations specialists, an amazing support staff and a team of database programmers who can market an REO property online and make it searchable to interested buyers. Our professional REO skills are here to present your property in the best way possible to the highest number of interested buyers. We have excellent relationships with a network of banks and financing institutions across Southern California. We are also very experienced with REO and the marketing and sale of REO properties. We help our clients get premium sale prices and the highest profits from an REO sale.
REO stands for Real Estate Owned and is a class of property owned by a lender, typically a bank, government agency, or government loan insurer acquired after an unsuccessful foreclosure auction. The foreclosing beneficiary sets the opening bid at the foreclosure sale for the outstanding loan amount and if no bids occur, the beneficiary gains ownership of the property. This often arises when the amount owed, or remaining loan balance, is higher than the current market value as often results following a real estate bubble. After the beneficiary repossesses the property it categorized as an non-performing asset and listed in their books as an REO.
Once the borrower becomes delinquent on their mortgage payments the lender will determine the amount of equity on the property. This is typically done through a Broker’s Price Opinion (BPO) or an appraisal. The amount of equity determined by the BPO allows the bank to decide to approve a short sale (if requested) or go through the foreclosure process. If the lender cannot sell the property through a short sale or the foreclosure it becomes an REO property.
After it becomes classified as an REO, the beneficiary will try to sell the property on its own or with the aid of an REO Asset Manager. They will remove the liens and debts placed on the home and attempt to sell it to the public through future auctions, direct marketing, or by itself. Real Estate investors frequently purchase REO properties because of the discounts offered to compensate for the often distressed and poorly maintained condition of the property.
Large banks and government entities have REO/asset management departments that field bids and offers, maintain the upkeep of the property, and handle sales. REO properties on the open market are listed in MLS by the broker who performed the BPO.
Bank REO properties typically are neglected and in poor condition and may need repairs and maintenance to satisfy property upkeep laws and to preserve and prepare the property for sale. The mortgage lender typically has the responsibility to maintain the upkeep of the property and usually they will outsource it to a specialized property preservation company. The property preservation company will change the locks, remove any debris, and perform property maintenance such as winterizing, cutting the grass, repairing roof leaks, and rehabilitation. The property must be secured and locks changed to prevent squatting and swimming pools must be secured to prevent the incidence of injuries or death from drowning or falls.
If you are thinking about buying a REO property in California, IMAX Premier is the best agent to consider. We will help you find the best location while we seek the features, amenities and condition that you’re looking for. We can provide you with a thorough, expert analysis of the property that will help you make that all-important final decisions. We know the real estate business better than anyone in the region so you want us to help you work with your investment guidelines to get the best deal.
For additional information or a consultation, contact one our representatives at IMAX Premier today and we can assist you in answering any questions or begin the process of purchasing an REO property.