Buying Foreclosures
A foreclosure, also referred to as an REO (real estate owned), property is one that has been repossessed by the bank/mortgage lender after the owner of the property has failed to comply with the agreement/mortgage or deed of trust. Once the foreclosure process is complete, the lender/bank can sell the property and keep the proceeds to pay off its mortgage and any legal costs.
Buying foreclosure properties have their pros and cons. Typically foreclosures are in somewhat of a distressed state which normally allows them to be priced lower than a traditional sale of a home on the market.
