Hey, everybody it’s Peter here at H&M Realty. So I want to talk about one particular thing – how people buy property and it’s going to become more relevant here in the next year or two, and it was very relevant back about eight to ten years ago in 2008-9-10-11-12 and 13 and 14, with bank-owned properties. So you’ll see based on the type of designator for that specific property, and it may say a standard sale, it may say a short sale, it may say a bank-owned property or a REO and I want to talk about bank-owned and REOs.
So bank-owned and REOs are the same thing and REO stands for real estate owned property. So basically what it is, is that property is owned by the bank. So someone ultimately stopped paying their mortgage and that property ended being foreclosed on and then after it was foreclosed on it went back to the bank. It could be Chase, it could be City Bank, it could be US Bank, it could be Union Bank or whatever bank that is and then now they’re selling it, typically in rough shape, and for a discount because they want to sell that property. They don’t want to continue to hold that property because they’re losing money on it.
Typically these houses haven’t been lived in for probably three months up to six months up to sometimes — You know, back when we had that big recession, back to a year they hadn’t been living in it and when they were living it in it they were not living very well and they didn’t keep up with the maintenance and the rehab and stuff like that. So when you see that designator on your search, talk to your real estate agent and ask them about it and see how potentially that could be a house that you could buy.