REO, as you may know, stands for “real estate owned,” and is a real estate and property preservation term that organizations in the United States use to describe a certain class of real estate, or property. REO properties are properties owned by a lending organization such as:
- A bank
- A government agency
- A government loan insurer
These properties are usually bank-owned properties that have been seized by the banks or lenders from residents who were unable to pay their mortgages. The banks or lending agencies were counting on the interest on the loans for their own revenue, and so must salvage their investments when homeowners default their loans or can’t pay their mortgages. Their first move is to try and sell the properties at foreclosure auctions.
How Can I Learn About Property Preservation?
If you’re serious about getting into this great industry, the best thing you can do is educate yourself.
- The U.S. foreclosure market and how it works
- How to bid on and estimate property preservation repairs
- How to build a property preservation team
- How to obtain insurance prior to beginning work