Foreclosure Education - Buying Foreclosures

A Tucson REO is an acronym for “Real Estate Owned” – in practicality it means a bank or financial institution receives a property deed to a home through the foreclosure process; i.e. no one showed up at the courthouse steps to bid a minimum amount of the existing mortgage after the homeowner walked away from the mortgage. Please refer to our Tucson REO FAQ Page for more details on this process.

Why Tucson REOs can be Great Deals

    * The bank does not want to carry a Tucson REO home on their books any longer than possible. So, there is some pressure on the bank to sell the home and get it off their books - they may list it at a reduced price to drive a quick sale.

    * If two loans were secured with a second mortgage (which is not uncommon) and the second lender doesn’t make critical back payments to the first lender and starts foreclosure proceedings, then, the second lender may be excluded from any financial return. In many cases a second mortgage may make up 20-30% of the entire market value of a home. This scenario is not always in place when buying an Tucson REO home. But, it can be quite common.

    * Bank owned homes are usually sold way below market prices, with great terms like low down payments and low interest rates.

    * Since the seller of a Tucson REO home may also be the lender, you can negotiate directly with the bank to have them pay all or part of the closing costs.

    * Tucson REO homes are usually vacant because the bank has evicted the previous owner, saving you  time and emotional baggage involved in the eviction process.

* You typically have the ability to inspect a Tucson REO home versus a Foreclosure – enabling you to have a sense of the condition of the home and what (if any) funds you will need to invest in the property to rent it out or resell at a later date.

Buying Tucson REOs is a highly specialized transaction and the negotiation and closing process directly with a Bank or Financial Institution can be convoluted – let our market-honed dedicated  team help you find and negotiate the right deal.