Agent

Buying REO property a win-win situation

Lender cuts costs, consumer avoids paying upfront

DEAR BOB: I am interested in your suggestion not to bid at foreclosure sale auctions but to instead contact the foreclosing lender immediately after an unsuccessful auction. What are the advantages of this strategy, rather than bidding at the public foreclosure sale? --Adrienne P. DEAR ADRIENNE: You are obviously very intelligent. If you bid at the lender's foreclosure sale auction, you must produce cash, either at the auction or soon thereafter. Purchase Bob Bruss reports online. Also, there is often competition from professional bidders, known as "the 40 thieves." If there were no bidders at the auction, the lender then obtained title to the foreclosed property. It is then known as REO (real estate owned). Most lenders are anxious to get rid of REO property as fast as possible because holding it costs the lender money every day. If you contact the foreclosing lender fast (the day after the auction is best) before the property is listed for sale with a local real estate agent, be sure...

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