Definition of REO (Real Estate Owned Home):
Orange County REO:
Short for "real estate owned," Orange County REOs are foreclosed homes owned by banks and lenders. Banks either withhold from releasing these properties on the market because they don't want to take a loss or list them in the Multiple Listing Service (MLS) represented by an agent. Orange County REOs are often priced below market value to create bidding wars among buyers. Orange County REO properties can still be a great deal, but buyers should know that REOs may need repairs and banks will rarely cover these costs. When looking at purchasing an REO, buyers must get pre-approved with the bank that owns the property and try to put together the "cleanest" offer possible if they want to get any realistic opportunity at purchasing the home. “Clean” meaning ZERO contingencies a high earnest money deposit and no requests to the bank to pay for closing costs.