What is the difference between a regular foreclosure and a REO foreclosure?

bobbykorey · Joined: 15 Sep 2008 Posts: 2 1.52 Dollars($)

Hi Guys,

I just wanted to know the difference between a regular foreclosure and a REO foreclosure, does the difference include variations in the related comps?

Thanks in advance...

adonis · Posted: Tue Sep 16, 2008 12:46 am Post subject:

Welcome bobbykorey,

REO stands for the "real estate owned". When no buyer shows up at the courthouse to bid the minimum amount of the existing mortgage on a property, the bank take over such properties and then sell them off through REO sale on it's own.

The bank will get rid of the liens and other expenses and try to resell the REO through auctions or direct marketing through a realtor. The buyers for most REOs are real estate investors who purchase them at a low price as because most REOs are in poor shape and condition.

bobbykorey · Joined: 15 Sep 2008 Posts: 2 1.52 Dollars($)

Thanks Adonis,

But can you still some more light on this??? what are the differences in comps??

sara · Posted: Thu Sep 18, 2008 4:52 am Post subject:

As far as I know, comps refer to those properties which have characteristics that are similar to a subject property whose value is being determined. But I didn't get your question? could you please what exactly you wish to know about comps?

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