So, is this a foreclosure?
Technically speaking, the home was foreclosed on because the
owner of the home failed to make their scheduled payments. The
bank set up and went through a public auction, but there was
not any bids placed on the home, so the bank ended up owing the
property. Yes, the home was foreclosed on, but it is well past
the foreclosure process and the bank will be anxious to get rid
of the property.
Advantages of REO vs. Foreclosed Property
When you are thinking of buying an REO you have to distinct
advantages that a buyer does not have with a foreclosed
property. The first is that you are able to buy on your
schedule, as you do not have an auction date to work with and
around. You can make an offer of the home any time; you don’t
have to wait for bidding to begin. Another big advantage of an
REO compared to a foreclosed property is that you can inspect
it before you buy, when you cannot do this with the majority of
foreclosed homes that you think about purchasing. Being able to
inspect the property before you buy will let you know how big
of a project you will be dealing with.