Los Angeles REO

Los Angeles REO is a class of property referred to as Real Estate Owned. Property returns to a bank, government agency, or loan issuer after an unsuccessful sale at foreclosure auction. If no bidders at the foreclosure auction secure the property, the beneficiary will repossess the property. The term REO comes from OREO. Used on financial statements, Other Real Estate Owned means that property owned by a financial institution is not directly related to its business. It is considered an asset of the company, but a non-earning one.

Whether you understand the legalities and jargon, or not, REOs mean an investment opportunity for you. These distressed properties may be available for less than the mortgage that was owed to the bank. Short sales are a similar sale option. When the financial institution obtains a Broker Price Opinion they may allow a short sale. If the owner doesn’t ask, the foreclosure process will continue. If the property is not sold with either of these methods, the result is a Los Angeles REO.

Los Angeles REO properties may be in poor condition or in need of minor repairs and maintenance. For properties sold “as is,” buyer assumes responsibility for a professional home inspection. A REO can be a wise investment, however. Work with HomesByRafael.com to learn more about investment opportunities available. Rafael Dagnesses would be happy to help you find the right property with the potential you desire. Together you’ll find the foreclosure, residential home, condo, or single-family residence that fits your long-term needs.

View Los Angeles foreclosures and REOs now.