So what is a bank owned property anyway?
A bank owned property is a house, apartment building, office building or any other piece of real estate that was purchased at a local foreclosure auction by a bank.
The property in question was in foreclosure and the owner had failed to pay the mortgage.
Therefore, the bank’s only recourse was to go through the foreclosure process and legally force the property owner to either pay back all the money he or she or it owed OR surrender the property back to the lender via foreclosure.
A foreclosure property is actually sold to the highest bidder at the auction or sale.
And in most cases, this ends up being the bank that was foreclosing on the property in the first place. Most foreclosed properties are over leveraged and real estate investors will not pay that much for them.
So the bank is forced to buy the property back, hire a real estate agent and then resell it.
These Non-Performing Assets Are Also Known As:
REO (real estate owned)
Each of these terms refers to the same thing – a piece of real estate that is now owned by the bank.
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