Friday, February 27, 2009

REO and Others Defined

So what's an REO? By now, if you don't know you, must have been living on the Moon! Seriously, some people don't know what they are and the differences in bank owned and foreclosures.

Let's start with some definitions. First a REO is Real Estate Owned by a bank or another lending institution. In the 80's and with some government agencies they are called OREs or Owned Real Estate. Guess you could call them OREO's, and we did in the 80's! What that means is that the bank or other institution took them back, owns them, because someone did not make the agreed payments or comply with the agreed terms.

In California when you purchase a home you sign a note that you promise to pay the money back to the bank on certain terms. That note is secured with a Deed of Trust or Trust Deed that says if you fail to make your payments or meet the agreed terms the bank has the right to start a legal procedure to collect the debt and/or take the property to recover their loss.

This process is called a FORECLOSURE. It is a legal process where the the bank gives you time to make up the payments or correct other things like pay your taxes. If you don't do this in the time allotted then the bank, individual, or other entity then all the money you owe is due and if you don't pay all of it, plus attorney fees, etc. they will sell it. In the past you may have heard the term "at the court house steps." That's were many sales take place but they can also take place in an office or at the property.

The sale is often referred to as a FORECLOSURE SALE or FORECLOSURE AUCTION because the bank says what they want and anyone can offer more. You just have to have the cash or cashiers check with you! In this market, no one wants to buy many of them so they go back to the bank. Now the bank owns them and there you have it--an REO or ORE.
So you can see that "bank owned," REO, ORE, and foreclosed home are really one in the same.

Next time, Opportunities with Bank Owned Real Estate

Saturday, February 21, 2009

Welcome to our World

As a way of introducing myself, I have been selling real estate for over 30 years and I am just now entering the blogging world and looking forward to sharing my knowledge, adventures and experience with you. And let me tell you there have been some amazing adventures!

I have been involved in hundreds of transaction over the years—in every aspect of real estate. During the last 3 downturns in the real estate market I have worked with banks, investors, asset managers, financial planners and buyers of bank owned or REO properties. It has been very rewarding! I am eager to share with you some of the knowledge I have gained and offer you insights on this market.

While the market was racing to new heights, I had the opportunity to teach agents at a major real estate firm, Intero Real Estate Services, as the Vice President of Training and Development and Branch Manager for over 100 agents, most brand new to the business. I am proud to say that many of the agents I mentored during that time have gone on to be successful agents in Silicon Valley.

In 2007, I went back to the selling side of real estate where I focused on the REO’s or bank owned properties. I am fortunate to have a wonderful business partner, Joe Rosano, who has over 20 years of real estate experience. Together we have 23 years of REO experience. We are both Certified Residential Specialists and California licensed real estate brokers and have developed the best team in the business.

So take a ride with us and see what you can learn about REOs, foreclosures, short sales and the ins-and-outs of bank owned property.

Bonnie Wilson