WHAT IS A REO REAL ESTSTE OWNED
The terminology REO is a short version for Real Estate Owned. Investors typically picks up the homes at a bargain. Reports show that there will be many on the market in 2021 along with Short Sales. This is when a bank takes over the house from the owner. There are several steps that will occur before the bank has to take home from owner. First of all the owner has to be behind at least ninety days in payments. Of course letters and emails are sent once late each time. Once this is encountered a lis pending is put into county records to make this official and the home will show as distressed. All banks operate differently. Many give time to make up payments or work out a plan. There are so many scenarios that can be worked based on income of families and this varies from bank to bank. Many give extra time to make up payments based on circumstances of finances and or hardships. The owner is officially notified by certified mail of their rights and communicate with their bank and if there is no final decision in place. Generally banks offer cash for keys is the most effective way for banks to have the tenants removed quietly and this is much cheaper than going through the eviction process and owners being served by the process server. This can be a lengthy process and the next costly way to remove tenants. Thirdly is the last thing a bank wants to do is take the owner to court and obtain a huge court cost with many additional expenses. This put a lot of added pressure on owners not to include what they are already going through. Many times these are legitimate situations with families such as job, death etc to lose income to pay bills. If you have any questions whatsoever feel free to call me at 407 479-8583. This is a lot to of information keep up with current laws to advise what you need to do. I am on top of it with my 16 years of experience and through the last crisis.