Prudential - C. Dan Joyner Co., REALTORS®

REO stands for “Real Estate Owned” by banks and mortgage companies.  These properties have gone through foreclosure and are now owned by the bank or mortgage company.    

Sometimes the asset manager responsible for the home will allow the broker to make repairs and cosmetic improvements to enhance the marketability.  Others are sold “as is”, with the purchaser responsible for repairs.

Prior to putting the property on the market the bank’s asset manager will order an appraisal and have the broker advise them about the condition of value of the property?  They are then priced accordingly.  When a home is to be sold “as is”, the value will be reflected in the sale price; the amount of the previous mortgage or the amount bid at the foreclosure sale do not determine the value.  

No. After the property is foreclosed there is no mortgage.  The bank or mortgage company owns the asset.

Yes, they are listed in the same way any other home for sale is entered into the MSL and related internet sites.