REO Homes in Utah

When nobody bids on a home at a public foreclosure auction, the lender bids for the amount owed. This becomes a Real Estate Owned (REO) or bank owned property. The large majority of the time blank REO homes end up listed with a Realtor and are found listed on the MLS for free. In the MLS notes look the owner will usually be listed as "REO" or "Bank Owned." REO properties can also be found online from nationwide databses like foreclosure.com. These services do require a fee, but can usually be utilized for free for atleast a week.

Banks don't like carrying homes and so usually will price it low to try and sell within three months. Bank Owned REO Homes are nearly always sold "as is."

• Search for Bank Owned and REO properties on the MLS.




• View REO properties from Foreclosure.com free for one week.

Buying bank owned properties

There is a lot of interest in buying lender owned properties in Utah. A lot of information, infomercials and seminars bringing up the subject. Often the information offered is for sale, with the promise that you can make a lot of money with little effort, and no money down once you know “the secret formula”. The fact is that there are no secrets, and to make money does require effort, and money.

What’s a REO Property?

REO stands for “Real Estate Owned”. These are properties that have gone through foreclosure and are now owned by the bank or mortgage company. This is not the same as a property sold as a foreclosure auction or Trustees Sale . A REO, by contrast, is a much less complicated and attractive transaction. The REO property did not find a buyer during foreclosure auction. The bank now owns it. The bank will see to the removal of tax liens, evict occupants if needed and generally prepare for the issuance of a title insurance policy to the buyer at closing. Some banks will even clean the property up a bit before selling. REO’s in Utah are exempt from normal disclosure requirements and are sold "as is."

Here is a list of banks sites to find their inventory of REO Bank Owned Houses:

Is it a bargain?

It’s commonly assumed that any REO must be a bargain and an opportunity for easy money. This simply isn’t true. You have to be very careful about buying a REO if your intent is to make money off of it. While it’s true that the bank is typically anxious to sell it quickly, and usually wants it sold within 3 months. They are also strongly motivated to get as much as they can for it. When considering the value of a REO, you need to look closely at comparable sales in the neighborhood and be sure to take into account the time and cost of any repairs or remodeling needed to prepare the house for resale. The bargains with money making potential exist, and many people do very well buying foreclosures. But there are also many REO’s that are not good buys and not likely to turn a profit.

Lender Owned - Lender Properties

Lender Owned is just another name for Bank Owned and REO properties. The property wasn't purchased at the foreclosure auction and now the Lender is the owner.