Real Estate Owned (REO) Properties for Sale: A Comprehensive Guide

Real Estate Owned (REO) properties are homes or buildings that have gone through foreclosure and were not sold at the foreclosure auction. Instead, the property has reverted to the lender (usually a bank or government agency) that issued the original loan. REO properties are often sold at competitive prices, making them an attractive option for homebuyers and investors. However, buying REO properties comes with unique challenges and benefits that prospective buyers should consider.

What Are REO Properties?
When a homeowner defaults on their mortgage, the property goes through foreclosure. If the property doesn’t sell at auction, it becomes Real Estate Owned (REO) by the lender. Banks or lenders then sell these properties through real estate agents or directly to buyers, typically at a lower price than market value, in order to recoup their financial losses.

Key Characteristics of REO Properties
Below-Market Pricing

REO properties are often priced lower than comparable homes in the area because the bank is eager to sell and recover its loan.
As-Is Condition

These properties are typically sold “as-is,” meaning the bank is not responsible for any repairs or renovations. Buyers should expect the property to potentially require repairs or updates.
Clear Title

REO properties come with a clean title, as the bank has resolved any previous liens or unpaid taxes.
No Bidding Wars

Unlike auctioned foreclosures, there is no auction involved in purchasing an REO property, allowing buyers to negotiate directly with the lender.
How to Find REO Properties for Sale
Bank Websites

Many banks and financial institutions list their REO properties on their websites. Major banks like Bank of America, Wells Fargo, and Chase typically maintain dedicated pages for their foreclosure and REO listings.
Real Estate Websites

Websites like Zillow, RealtyTrac, Foreclosure.com, and Hubzu often have searchable databases of REO properties. These sites allow you to filter by location, price, and other criteria.
Real Estate Agents Specializing in REOs

Working with a real estate agent who specializes in REO properties can give you access to off-market listings, insider knowledge, and professional guidance throughout the process.
Government Agencies

Federal agencies like the FHA, HUD, and VA sometimes list their own REO properties for sale. These properties often come with additional benefits, such as the possibility of low down payments or flexible financing options.
Public Auctions

Some REO properties may be auctioned off directly by the bank or through online platforms. However, these are less common compared to traditional listings.
Advantages of Buying REO Properties
Lower Purchase Price

REO properties are generally priced below market value, making them an attractive option for buyers seeking a bargain.
Clear Title

Buyers of REO properties can expect to receive a clear title, meaning that there are no outstanding liens or legal issues associated with the property.
Opportunities for Investment

Investors often purchase REO properties to renovate and flip or use as rental properties, leveraging the property’s below-market price for a potential return on investment.
Potential for Quick Closing

Once an offer is accepted, closing on an REO property can be relatively quick, especially compared to other types of foreclosure sales.
Disadvantages of Buying REO Properties
As-Is Condition

REO properties are typically sold as-is, meaning the buyer is responsible for repairs, maintenance, and cleaning, which can lead to unexpected costs.
Competition with Investors

Many REO properties attract investor interest, which can make it difficult for first-time buyers to secure a deal, especially in desirable locations.
Potential for Hidden Problems

Since these properties are often neglected during the foreclosure process, there may be underlying issues such as structural damage, mold, or pests. A thorough inspection is crucial before buying.
Lengthy Purchase Process

While REO sales generally take less time than foreclosure auctions, they can still involve delays, especially when dealing with paperwork and negotiations with the lender.
Limited Seller Flexibility

Banks and lenders typically have less flexibility than private sellers when it comes to negotiating terms, such as price reductions, contingencies, or closing dates.
Steps to Buying an REO Property
Find Available Properties

Begin your search on bank websites, real estate platforms, or by working with a local agent specializing in REOs.
Get Pre-Approved for Financing

Since REO properties often attract multiple offers, securing financing ahead of time will give you an advantage. Many banks may also require pre-approval before they will consider your offer.
Visit the Property

Schedule a visit to the property to inspect its condition. Pay attention to structural issues, plumbing, electrical systems, and the overall condition of the home.
Make an Offer

Submit an offer through the listing agent. Banks typically respond more favorably to offers from buyers with pre-approval letters or those offering cash, so be prepared.
Conduct a Home Inspection

Even though the property is sold as-is, a home inspection is vital to uncover potential hidden problems that could affect your investment.
Close the Deal

Once your offer is accepted, you will proceed with closing. The process may take longer than typical real estate deals, as banks may have specific procedures for closing on REO properties.
Tips for Buying REO Properties
Research the Market

Research comparable properties in the neighborhood to ensure the property is priced fairly and determine its true market value.
Budget for Repairs

Anticipate the costs of repairs, renovations, or improvements to the property, as many REO properties may require significant work.
Work with a Knowledgeable Agent

An agent experienced in REO transactions can help you navigate the process, negotiate with the lender, and uncover potential opportunities.
Be Prepared to Move Quickly

REO properties can sell quickly, especially in competitive markets, so be prepared to make swift decisions and submit your offer.
Conclusion
Buying Real Estate Owned (REO) properties can offer significant savings for those looking for a bargain, but it comes with risks and responsibilities. By understanding the unique characteristics of REO properties, thoroughly researching the market, and working with professionals, you can make a sound investment and secure a property that meets your needs.

Redefining Destination Photography

Do you live in a location that thousand or even millions of people visit annually for vacation or recreation? If your answer is yes, you probably live in great location for starting a destination photography business.In the past, the definition of destination photography was: following a customer to the location of their choosing and shooting them there. There is a new buzz around destination photography which is being focused around seeking out travel destinations in your area and sourcing customers before they reach your destination. There is usually an attraction that brings a massive amount of visitors to almost every state in multiple locations every year. The key is positioning yourself in front of these customers in their vacation planning stage. Letting customers come to you rather than the other way around makes for a great way to generate income and is a trend on the rise in recent years.This new photography business plan or model, of sourcing customers coming to a vacation destination is a relatively new concept in the realm of portrait photography marketing. Sourcing destination photography customers at a location has been done for years in the field of wedding photography, but for some reason overlooked for vacationing travelers. With the onset of the new digital photography revolution this is a great way of starting a home based photography business because of its low start up cost.Because this is a new trend, none of the old rules apply when it comes to marketing to this untapped segment. Travelers are looking for easy fun portrait sessions designed specifically for those on vacation. Purchasing a destination photography business E-Book is a great way to learn how to structure your business to traveling clientele. It can save you time and money letting someone with a proven customer generation method explain exactly how to reach these vacationing customers.A destination photography business can be a high profit career if it is executed correctly. Vacationing customers are looking for ways to spend their vacation dollars; it is up to you to show them how! If you live in an area with plenty of tourism, you can usually have one portrait session in the morning and one session at night, and decide which days you want to work. It can be easy to make full-time income from only working part time, really increasing your quality of life. Even if your destination only draws customers a few months a year you can often make a whole years worth of money in just a few months.There are hundreds of thousands of places through-out the world to use as a home base for a destination photography business. You can either live in the vacation destination or move there to live the life you have always dreamed of.Here areas some ideas for portrait locations for a destination photography business:1. Florida- beach photos
2. California- beach photos, Yosemite photos, wine country photos
3. Greece-beaches, ancient ruins
4. Italy- wine country, beach, castles
5. Hawaii- Beach photos
6. New York- fun City photo backdrop portraits
7. Canada- whistler ski photos
8. Texas- Ranch photosThe list of possible locations is almost endless. If you know where people like to visit then you probably have a great area for a destination photography business.

“Success” and Education

“The man who graduates today and stops learning tomorrow is uneducated the day after.” – Newston D. Baker

The prospect of success is what drives many people to continue their education. Whether this success means the expansion of their person, the opening of their mind to possibilities, the sharpening of their skill set, building marketability, or a pay raise – higher education is considered by most to be a very valuable asset. The implications are many: you have dedicated a portion of your life to studying a particular subject, and so have gained specialized knowledge and skills; you most likely have incurred some debt; and somehow, you are now supposed to be prepared to take on the world. But are the students of today prepared for life? Are they ready and equipped with what they need to be successful?

Everyone has an idea of what “success” means. And the general idea probably looks pretty similar for most – someone doing well overall; emotionally, financially, and spiritually. They probably have a good job, a good head on their shoulders, money in their pocket, and a good future ahead of them. They are moving along in their life, and they appear happy and fulfilled.

Although up front this dream may appear rather simple, figuring out the specifics, or one’s own path to reaching such success, is the real challenge. What decisions must be made so that one can have a successful life? Does education today prepare students to answer these difficult life questions?

Education blogger Tom Whitby touches on the lack of focus in K-12 schools on critical and out-of-the box thinking in this era of standardizing testing. “We talk about personalized learning for each student… We recognize that all kids are created differently. Even in consideration of all that, we standardize their assessment… We are not matching up the skills that our children will need in a future that we know little about to the education we provide today. Yet, we still claim to be preparing kids for life.”

“We cannot continue on the current path of education if we want to prepare our children for their future,” he declares. “Our children will not live in the world that we grew up in. We need to prepare them to be flexible, critical thinking, problem solvers. They need to be able to get beyond the limitations of their teachers and parents.”

In Alain de Botton’s TED talk “A kinder, gentler philosophy of success,” Botton points out that our ideas of success are often greatly influenced by society, by ads, and by our parents, and that we are highly susceptible to suggestion. We are also, Botton says, very worried about what others think of us.

“When we think about failing in life, when we think about failure, one of the reasons why we fear failing is not just a loss of income, a loss of status. What we fear is the judgment and ridicule of others. And it exists,” Botton said.

Botton suggests that we take care to ensure that our ambitions are our own, and that we recognize that “success” cannot exist without “failure.”

A paradox in our society, Botton continued, is the simultaneous existence of both the belief that we are all equal – that anyone can achieve anything – and low self-esteem. Suicide rates, he explains, are higher in the developed countries than anywhere else in the world. “[S]ome of the reason for that is that people take what happens to them extremely personally. They own their success. But they also own their failure,” he said. Our society, furthermore, and now more then ever before, attributes success to one’s own work ethic, ability, and determination; we believe that people deserve the lives they have, because we are all supposed to be in the driving seat.

In other words, we are supposed to have all that we need to succeed. However, disparities, gaps, influences, and circumstance, all exist and perpetuate inequalities within our society, and the individual is not always in control. We are not all on an equal playing field, either; we do not all have equal opportunities. This is not an excuse, but something that deserves consideration and care. America will continue to work towards the dream of a meritocratic society, but this dream is impossible to fully realize.

“The idea that we will make a society where literally everybody is graded, the good at the top, and the bad at the bottom, and it’s exactly done as it should be, is impossible,” Botton said.

It has been said that education is the great equalizer. And I believe that education can change the world, and our future is dependent on the youth and the quality of their education. Education can help people find their success because it can open their minds to the world and to their own potential so that they can have the opportunity to choose their way. But what can we do from here?

Continue to grow. Continue to move. Know that moving and growing is the only way. Not look back. Be bold. Instruction may end in the school-room, as Frederick W. Robertson said, but “education ends only with life.” And John Dewey concurs: “Education is not preparation for life; education is life itself,” he said. If these things are true, then success is not immediate, nor something that can immediately follow formal education either, but can be found only in the outcome of the entirety of our lives and the completion of our journeys. Education is a form of success on its own, and leads to more successes, but only if we choose to own our own person and lives, and accept our “successes” and “failures.” “You can’t be successful at everything,” Botton said. “You can’t have it all… [A]ny vision of success has to admit what it’s losing out on, where the element of loss is.”

School can’t prepare someone for all that will come, or give them direct answers for what choices they should make. Formal education is only a beginning. We don’t always know where we are going, and we can never know all that lies ahead of us, but we must continue moving forward and becoming the people we want to be. The paths will unfold as we face the challenges and are open to what may come. And if we get through all of that, we will have succeeded – in living.