REO Time Line Chart and The Expenses Based on Your Sate
See all of the REO time line chart and the expenses based on your state. Each state is different when it comes to the time line that is allowed once your property goes to foreclose sale, and if your property becomes a Real Estate Owner(REO) property or not. A REO or a bank REO just means the property went to foreclosure auction, but was not successfully sold at the real estate auction. So the bank or real estate company takes back possession of the property since there was not a successful buyer for it. The banks or mortgage company is now on a time schedule to sell the property as quickly as humanly possible. They want to get rid of the property quickly because the longer it is kept, the more expensive the property becomes to them. It becomes a liability.
The mortgage company or bank wants to unload it, but at the right price. Sometimes they let it go for pennies on the dollar, because if they did not do so it would continue to eat into their bottom line. That is why sometimes you hear someone talking about getting a “steal” at a foreclosure auction on a property. The bank just wanted to get rid of the liability as quickly as they could. They are not into holding on to a REO property or a bank REO, it cost them in up keep, insurance, property taxes, repairs, the risk of vandalism, risk of natural disaster, among other things that affect them financially.
However, each state has a time line and it must be followed to the “T”. The trustee is the foreclosure attorney representing the mortgage company or bank and they are responsible for following the step by step procedures dictated by the law. There are expenses associated with REO that your lender can legally charge, among other things. Please see the REO chart below to get all the necessary information for your state if you are ever involved in a foreclosure of your residence. That way you are one step a head at all times if your property ever becomes a bank REO.
Remember, not all states have a redemption period after a property goes to foreclosure sale. A redemption period is a time period after a property goes to foreclosure sale for a borrower to pay up all that is due plus their eviction costs and reclaim their property. If there is a redemption period and the homeowner is not able to pay up all that is owed in time, it will go to a buyer or back to your lender. If the property goes back to your lender it is a REO property, if it goes to a successful bidder it is not a REO, it is owned by a 3rd party. Regardless, if it goes to a successful bidder or your mortgage company, you may still have time to pay up all outstanding expenses and eviction expenses, and get back the property if you so desire. See the foreclosure chart at http://www.mortgagecrisistips.com/foreclosureinformation.html to see if your state has a redemption period or not for beginners, and go from there.
