Foreclosures and REO property question – “What is the difference between a foreclosure property and REO (real estate owned)?
A foreclosure is a legal process in which, against the wishes of the owner, real property is sold to satisfy a public or private debt for which the real property has been pledged as security.
Real Estate Owned (REO) is real property that has been foreclosed by a lender and is now owned by the lender.
There’s a lot of confusion between a foreclosure and REOs. When real estate buyers call me asking about foreclosures in most instances, they are really inquiring about REOs and here’s why?
- A foreclosure property goes through a foreclosure auction which is usually held on an assigned date on the steps of a local court house.
- Foreclosure property buyers need to be able to purchase the property for ALL CASH.
- Foreclosure property buyers inherit all unpaid liens, including mortgage debt, taxes, construction loans, home equity lines of credit, and possibly a second or third mortgage.
On the other hand, an REO property is:
- REO property is already owned by the bank.
- Home buyers are able to get a regular mortgage or loan on that property. All cash is not needed.
- REO properties in most instances come with clear title.
Five things to look for when purchasing REO or already foreclosed homes:
- Work with your Pasadena realtor and the Title Company representative to ensure that the title to the Pasadena home you’re buying is free and clear.
- Understand that most foreclosures occur in a down-trending market. Factor in falling home prices into your purchase offer. Look at the current local market conditions and historical trends prior to submitting your offer to the bank.
- Banks do NOT provide many disclosures, so be prepared for surprises. Ensure that all home inspections are completed – don’t forget a sewer line inspection – prior to close of escrow.
- Look for neighborhoods that are not overrun with foreclosures. Neighborhoods with many foreclosures might offer better prices, but will take a lot longer to turn around and the home prices will continue to depreciate.
- If you are looking to buy an already foreclosed property as an investment, be aware that lenders charge higher interest rates on 2nd homes and investment property. Speak to a lender and get fully approved prior to making an offer.
Below is a map and a list of REOs or already foreclosed homes in San Gabriel Valley including Pasadena and surrounding cities:
Showing properties
1 - 50 of 100.
See more Foreclosures.
(all data current as of
5/17/2012)
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$69,900 : 3415 Galena Street, Los Angeles1 bed, 1 full bath
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$109,900 : 3259 Pyrites St, Los Angeles2 beds, 1 full bath
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$119,900 : 3030 Valle Vista Drive #13, Los Angeles1 bed, 1 full bath
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$124,900 : 1517 E GARFIELD AVE, Unit 56, Glendale1 bed, 1.0 baths
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$129,900 : 5870 BENNER ST, Unit 101, Los Angeles1 bed, 1.0 baths
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$132,900 : 1517 East Garfield Avenue #32, Glendale1 bed, 1 full bath
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$139,900 : 2338 Prince Street, Los Angeles2 beds, 1 full bath
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$147,500 : 5860 Benner Street #201, Los Angeles1 bed, 1 full bath
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$154,900 : 1121 WATERLOO ST, Unit B, Los Angeles2 beds, 1.0 baths
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$154,900 : 2315 HIGHBURY AVE, Unit 6, Los Angeles2 beds, 1 full bath
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$159,900 : 4512 Ferntop Drive, Los Angeles2 beds, 1 full bath
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$159,900 : 3015 DIVISION ST, Unit 211, Los Angeles2 beds, 2.0 baths
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$164,900 : 5057 Borland Road, Los Angeles2 beds, 1 full bath
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$169,850 : 4316 Guardia Avenue, Los Angeles3 beds, 1 full bath
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$179,900 : 669 Cypress Ave, Los Angeles3 beds, 1 full bath
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$185,000 : 1415 El Sereno #6, Pasadena3 beds, 1 full, 1 part baths
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$190,000 : 1417 North Marengo Avenue #3, Pasadena3 beds, 2 full baths
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$203,000 : 360 W Avenue 26 109, Los Angeles2 beds, 2 full baths
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$214,900 : 809 S 4TH ST, Unit 9, Alhambra2 beds, 1.0 baths
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$214,900 : 6140 MONTEREY Road #311, Los Angeles2 beds, 2 full baths
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$225,500 : 138 South Bonnie Avenue #7, Pasadena2 beds, 1 full bath
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$227,000 : 3722 MONTEREY RD, Los Angeles4 beds, 2.0 baths
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$229,900 : 330 South Mentor Avenue #208, Pasadena1 bed, 1 full bath
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$235,000 : 70 North Catalina Avenue #304, Pasadena2 beds, 2 full baths
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$237,000 : 1028 S MARENGO AVE, Unit 6, Alhambra2 beds, 3.0 baths
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$244,900 : 602 South 2nd Street #E, Alhambra2 beds, 2 full baths
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$255,000 : 5012 Monte Vista Street, Los Angeles2 beds, 1 full bath
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$259,900 : 288 S Oak Knoll Ave 2, Pasadena2 beds, 1 full, 1 part baths
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$259,900 : 1701 Garvey Avenue #8, Alhambra2 beds, 2 full, 1 part baths
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$262,900 : 537 North Adams Street #110, Glendale2 beds, 3 full baths
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$264,900 : 3711 BALDWIN ST, Unit 1702, Los Angeles3 beds, 3.0 baths
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$265,000 : 445 N WESTLAKE AVE, Los Angeles3 beds, 2 full baths
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$267,500 : 5061 Williams Place, Los Angeles4 beds, 1 full, 2 part baths
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$270,000 : 592 N Mar Vista Ave 5, Pasadena2 beds, 1 full, 1 part baths
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$279,900 : 245 Idaho Street, Pasadena2 beds, 1 full bath
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$279,950 : 424 N Wilson Ave 3, Pasadena2 beds, 1 full, 1 part baths
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$284,800 : 605 Myrtle Street #D, Glendale3 beds, 2 full, 1 part baths
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$291,500 : 615 PHEASANT DR, Los Angeles1 bed, 1.0 baths
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$294,000 : 9087 Lyledale St, Temple City2 beds, 1 full bath
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$297,000 : 3729 E GREEN ST, Pasadena2 beds, 1 full bath
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$299,900 : 6238 Aldama Street, Los Angeles4 beds, 1 full bath
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$304,000 : 5076 SHEARIN AVE, Los Angeles1 bed, 1 full bath
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$319,900 : 1957 North Fair Oaks, Pasadena4 beds, 2 full baths
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$320,000 : 808 South Verdugo Road, Glendale2 beds, 1 full bath
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$329,900 : 3141 Midvale Place, Alhambra2 beds, 2 full baths
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$334,900 : 501 E DEL MAR, Unit 103, Pasadena2 beds, 2.0 baths
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$339,900 : 705 North Stoneman Avenue #2, Alhambra2 beds, 3 full baths
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$349,000 : 4407 Verdugo Road, Los Angeles2 beds, 1 full, 1 part baths
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$349,900 : 818 ORANGE GROVE AVE, Glendale2 beds, 1.0 baths
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$359,500 : 239 ZERR CT, Glendale2 beds, 2.0 baths
Listing information deemed reliable but not guaranteed. Read full disclaimer.
Interested in discussing if a foreclosed home is right for you? Give me a call at 626-627-7107.
Originally posted at http://irina4realestate.com/foreclosure-vs-reo-real-estate-owned-property/
PasadenaViews Real Estate Team
Real Estate Agents
445 South Fair Oaks Avenue
Pasadena, CA 91105
Irina at PasadenaViews.com
