There are plenty of foreclosure homes on the market right now, which makes it a burgeoning opportunity for foreclosure clean up companies. Increasing the selection of available homes is particularly important now, Zillow says, because the inventory of for-sale homes listed on the site has fallen by 20 percent over the past year (which the company argues is an indicator of the larger market).
With foreclosures, it’s a good idea to have the letter state that you are relying on representations made by the foreclosing party that they have a legal right to enter the property and dispose of any remaining goods and that you are acting on behalf of the foreclosing party.
REO stands for “Real Estate Owned”, and it basically means that the bank foreclosed on the property and they now own it. However banks are too busy making money to worry about handling a property portfolio, so they generally want to offload any foreclosure properties as fast as possible.
This is the result of the weak housing market – those who don’t have to sell their homes are taking them off the market, as they can’t get a good price; this leaves proportionally more and more of the homes for sale being forced foreclosure sales, where the owners do not have a choice.
Bargain offers – There are a large number of cheap homes for sale under bank owned property listing that can be bought at a very good deal through foreclosures auctions as well as short sales whereby one can get very cheap houses which are in pre-foreclosures.