When people encounter major financial difficulties, many unfortunate circumstances can arise. In some instances, individuals may even lose their homes if they are continuously unable to make payments on them. When this occurs, banks or real estate companies may then become the owners of the home, and will eventually put the home up to be sold. They are then sometimes purchased by institutional buyers who buy multiple properties. In addition to bank owned properties for sale or Reo properties for sale, institutional buyers can also find distressed houses and foreclosed homes for sale.
Bank owned commercial properties and REO properties for sale are the result of real estate that was once owned by a bank being defaulted by the borrowers. After the borrowers default, the bank takes the property bank into its possession. When there are listings for REO properties for sale, most banks will inform borrowers and help them with the application process. Those who are planning on buying a reo property are able to view several homes and make offers on more than one REO property for sale.
Distressed properties and foreclosed homes are also commonly sought by institutional buyers. A property is considered distressed when the owner is in default on their mortgage. Between the years of 2008 and 2011, one third of all home sales were distressed sales. Institutional buyers looking to purchase several properties will find many distressed properties, foreclosed homes and REO properties for sale.