The economic downturn has resulted in a shift in consumer preference regarding home ownership. While the real estate industry was blamed for the worst economic crisis since the Great Depression in the 1930s, the housing market is steadily recovering today, thanks to the rising popularity of real estate owned properties.
There are several reasons why real estate owned properties, which are popularly known as bank owned homes, are popular among home shoppers.
Why REO Homes Are Popular Today
1. Bargain Prices
Real estate owned properties are popular today primarily because of their attractive prices. REO homes can be bought for very low prices, with many banks selling them for under 50 cents on the dollar! Depending on where you bought a real estate owned home, buyers can save up to 70% of an REO property’s full market value.
Real estate owned homes are selling for bargain prices as the lenders that own them, usually banks, are under pressure to quickly release them. The economic downturn forced many homeowners to default on their mortgage payments, resulting in lenders taking ownership of their houses. As banks are not in the business of selling real estate, they are forced to accept low offers for the properties just to get rid of them.
2. Clean Titles
Buyers are guaranteed of getting clean titles when they purchase bank owned homes, as all liens and claims against a house are wiped out once it becomes a real estate owned property. Lenders are required to erase all liens and claims against properties they repossess, that’s why buyers are choosing real estate owned homes over other types of residential properties. Banks typically erase second and third liens, as well as delinquent taxes, of all real estate owned properties.
3. Ready For Occupancy
Lender owned houses are also attracting a lot of interest as buyers can immediately move into the properties. Nearly all REO homes are vacant, as banks are required to evict tenants of houses that are under foreclosure proceedings. This spares buyers the emotional stress involved in evicting previous homeowners.
4. Inspection
Another big advantage of real estate owned properties is that they can be inspected by prospective buyers. As most real estate owned properties are vacant, potential buyers have ample time to inspect the houses. This prevents buyers from making hasty decisions and allows them to carefully assess their options.
5. Excellent Conditions
Contrary to popular notions, most real estate owned properties are in great shape. Buyers can find many REO homes that are well-maintained and in great shape. Remember that a lot of real estate owned houses were owned by people who failed to meet their mortgage obligations. As such, many repossessed homes are in mint condition. Some are even fully furnished or newly renovated.
Real estate owned properties are indeed popular and advantageous to prospective home buyers today. But despite their rising popularity, most buyers have little or no idea on how to purchase REO homes. To know more about real estate owned homes, visit
WakeREOs.com.
