Bank owned foreclosures, also referred to as REO’s (Real Estate Owned), is foreclosed real estate that is owned by the bank due to an unsuccessful foreclosure auction. There are several reasons the home may have not sold at auction, however the most common reason is negative equity, as the home is worth less than the amount owed to the bank. Of course, the bank seeks to receive the outstanding balance of the original loan; therefore, the minimum bid for the bank owned foreclosure is usually the price owed plus any fees.
Bank Owned Foreclosures
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