What Is REO Financing?
REO financing is a term that is used to describe a type of loan known as an REO loan. REO, or real estate owned properties are properties that have been foreclosed on, and have remained unsold via foreclosure sales and auctions for a period of time long enough to result in the revert of the ownership of the property to the bank. These properties are often in need of repairs, and are offered to the public at prices that are significantly lower than the market sale price for comparable homes.
How Does REO Financing Work?
The majority of banks will not provide financing for REO properties, since they consider it to be an "as-is" purchase, which is why many people turn to private lenders like ZINC Financial. Private lenders specialize in financing REO properties and base their lending criteria on the After Repaired Value of the property as well as the amount of cash the investor is able to invest in the purchase.
When evaluating REO properties, ask yourself the following questions:
Asking these and other important questions before purchasing an REO property will help to ensure that you are making the right decision. For more advice, investment tips, and to find out how you can obtain the REO financing that you need, visit www.zincfinancial.net for loan programs and requirements or contact the experts at ZINC today.
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