performanceTests

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An REO property is a house which has been acquired by a lender by way of a foreclosure process. Basically they are homes which mortgage companies have take possession of after an unsuccessful foreclosure auction. Foreclosure auctions on homes happen to be unsuccessful as the minimum buying these properties has got to cover the outstanding balances owed to your lien holder for the property. This would add the loan balance, any accrued interest, fees for attorneys and expenses incurred during foreclosure. All these things usually add up to more than the property will probably be worth. Once the minimum bid in a foreclosure auction is not met possessing the home goes for the mortgage holder as an REO.

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