Find foreclosures in Redmond, Oregon with Lohr Real Estate. You may have heard the term REO foreclosure but weren’t quite sure how it was different from any other type of foreclosure. REO stands for Real Estate Owned, or to be even clearer, real estate owned by a bank.
Normally when a buyer fails to pay the mortgage on a home, that home either goes into a short sale, or to a foreclosure auction. If it goes to auction, attendees have the opportunity to bid on it as well as other various available properties. In this process, some homes are sold as a foreclosure to the highest bidder. However, if the minimum bid is not met, then this would be considered a failed foreclosure auction. This failed auction then goes back to the lender as an REO Foreclosure.
If an REO is sitting on the bank’s books, it’s not making them any money. In essence, the longer a house sits on the the bank’s books, the more money they lose to hold the property. To prevent issues in the future, the bank offers discounts on REO foreclosures so that they can get rid of these properties as soon as possible. What makes now a better time than any to buy an REO foreclosure in Redmond, Oregon is the fact that lenders have thousands of these properties sitting on their books right now that they’d like to get rid of.