Frequently Asked Questions
Real Estate Owned (REO)
The REO home buying process is similar to re-sale homes. There are some significant differences. These are answers to the most frequently asked questions about REO properties. If you need further information about purchasing an REO property, click here.
What is an REO?
REO simply stands for “Real Estate Owned” – it refers to property that is owned and in possession of the lender, as a result of a Foreclosure Process.
Where can I find a Las Vegas REO home and who can buy them?
Anyone can buy an REO, whether you are a prospective homeowner or investor who wants a great deal on a home. There are lots of different sources for locating Las Vegas REO homes – the best way is to contact your Realty Executives agent and he or she can search the MLS and also access a list of Las Vegas REO homes.
Another way to locate Las Vegas REO homes is to directly contact lenders, but each one handles REO properties differently. Larger lenders post REO homes on their web sites in many cases, smaller lenders typically have one person in charge of the bank’s REO properties. Research can be quite time consuming if you are trying to do it on your own.
Is purchasing a Las Vegas REO property that much different from standard real estate transactions?
Most REO properties are owned and listed by corporations, as opposed to individuals - this makes the process more specialized and it requires in-depth knowledge of each lender’s rules and regulations.
Why should I buy a Las Vegas REO home or bank owned home?
One of the biggest advantages of buying a Las Vegas REO home is that you are purchasing a property without liens or other types of encumbrances – as in most cases, prior to a lender (bank) making an REO home available for sale, they will expunge all liens or claims against the property. This means there are no issues hanging over the property, be it a second or third mortgage, taxes, mechanics lien and/or any liens by creditors.
What is “earnest money” relating to a Las Vegas REO home?
Earnest money refers to the deposit that is given to the seller by the buyer to bind a transaction or assure payment, just like most traditional real estate transactions.
What type of shape is a Las Vegas REO home in generally?
The shape of the home varies depending on lots of variables - remember the seller (bank or financial institution) does not make any representation or warranty relating to the condition of the property (see below).
How important is an inspection for a Las Vegas REO home and who pays for this?
An inspection is very important when buying a Las Vegas REO home and the purchaser pays for this expense. An inspection is important as you are buying a home that has been foreclosed and you need to know if there are any serious problems such as structural, electrical, septic, etc.
Buying a Las Vegas REO home is a highly specialized transaction
Dealing directly with a Bank or Financial Institution during the negotiation and closing process can be convoluted – let your Realty Executives agent help you find and negotiate the right deal.