One of the latest trends in the real estate industry today is buying and selling bulk REO properties. The real estate comps on these properties are something wise investors should take notice of. While REO properties have been popular for decades, the housing market crisis of 2007 sent the industry through the roof. There are more and more investors looking to cash in on this depressed housing markets.
The term REO is used in the industry to denote those properties that are owned by the bank. When a homeowner goes through foreclosure, the bank obtains control of the property and attempts to unload the property at or near its assessed value in an auction. Because the number of houses the banks are taking over are growing rapidly, they are selling the properties at deep discounts to get them off the books. Taking advantage of these REO houses on the open market, through REO listings (comparables information can be obtained via your InvestorCompsOnline account) could mean the difference in a thousand dollar deal versus a ten thousand dollar deal.