Buying Foreclosures Pg1
The Process of Buying Reo Properties
When you set out to buy a foreclosed property in Greater Fresno County Area of Central California you should know up front what the process is that you are going to go through. First of all Foreclosed Properties get that way because the previous owner fell delinquent on their obligations that were secured by the property. Most of the time the obligation delinquency that causes a property to go into foreclosure is the falling behind of payment obligations on a first or second loan secured by a Trust Deed. The process I am going to explain here, is that of the buying of a Foreclosed Property that becomes an REO property. REO is an industry term that stands for Real Estate Owned by the bank. A property becomes an REO property in a few different ways but primarily this happens when the bank, after going through a series of steps to regain the possession of a property which it had issued or purchased a note on, and is secured by the property, buys it back at a Trustee Sale at the county courthouse steps. Others can bid against the bank at this Trustee Sale however in times like this when the outstanding debt secured by the property is usually much higher than the value, not many show up to bid against the bank because the numbers just don't add up. So when the bank successfully buys the property at the Trustees Sale, the property becomes an REO property and is usually listed for sale to get this bank asset off their books, so that it can free up resources that can then put the bank back into the business they are in, which of course is lending money. This brief description of how properties get foreclosed upon and how they turn into Bank Owned Properties is an over simplification of the process, but it should give you a good overview of how a property becomes a foreclosed property and then is listed for sale as an REO or Foreclosure. All Real Estate laws can vary from state to state, so this is just a simplified explanation of how the Foreclosure Process works here in California and specifically in Fresno and Clovis California.
