So just what does REO mean? REO stands for Real Estate Owned. It is a term used in the finance industry where bank takes over as the owner of a property. In other words a person doesn't own the property anymore but the bank does. This happens for a variety of reasons but it is important to understand the benefits to you of the bank owning the property. Let's cover a few of them so you can keep them in mind as you look for real estate owned properties in Long Beach. Keep in mind that some areas of Long Beach literally have ZERO REO properties while others have dozens to choose from. Use the MLS tool on the blog in the right hand tool bar to take a look at what is available.
- The Bank has to sell them - This doesn't mean they will take $1 for the property but they don't like owning property and they will be motivated to sell them.
- You won't have to wait 4 months for a decision like short sales - Since these are owned by the bank they are the final approval and have all of the information they need to make a decision. They aren't collecting the information like they are in a short sale.
- They are easier to see - most REO properties are vacant and have boxes that allow your real estate agent to show them to you.
Keep in mind that the banks have an agent working for them (the listing agent). Make sure that you have a qualified buying agent who has helped clients purchase properties owned by banks before. The forms are sometimes different and you will want someone with experience helping you every step of the way.
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