When considering real estate listings, many people will wonder what a “REO property” is. REO stands for ‘real estate owned’. It is the term used to describe a home or property that is in the possession of a lender as a result of a foreclosure. That means the foreclosure has already taken place, a sheriff sale has resulted in the bank purchasing the property, the bank has the title to the property and the bank can sell it.
When purchasing REO property it is extremely important to have the title examined by a professional title examiner and the title certified by a competent attorney . Many lenders, to save money, have only the present owner checked at the time of the foreclosure. Due to the professional laxity in purchasing and mortgaging real estate over the past 10-15 years REO properties are fraught with title defects and undisclosed liens and encumbrances that occurred during prior ownerships.
Also, many title insurance companies have been “insuring over” defects rather than resolving them. You need to know if there are any title defects on the property prior to purchase. The only way to protect your investment is to have an attorney who is a real estate specialist represent you if you decide to purchase REO property.
Tammy Young is a real estate agency that is associated with a real estate attorney. When we act as buyer’s agents and our buyer wants to consider a REO property we tap our resources to insure that our purchaser obtains a good mercantile title to the property that has no defects or defects that are resolved prior to the purchase of the property. We work with the bank owner, our real estate attorney and a solid title company that provides true insurance for the property to make sure that when our buyer purchases their property they will be the only and the absolute owner of the property.
Whether you are considering a REO property or a property offered for sale by a private individual, call Jason Wischmyer, an Indiana Real Estate Attorney or Tammy Young the on-staff realtor in Jason’s office today to get a real estate agent versed in the issues to be resolved.