Q: When a house shows it is in foreclosure but states it is inactive, what does that mean?--Anonymous, AZ. If the property sells to a third party at the auction, the bank or lender recoups some of the cost of the outstanding loan balance, interest and fees from the sale of the property. If you want to buy an REO property owned by a private bank, make an offer just as you'd do with any other type of home. A: It means the bank, who is the owner, has taken it off the market. We also recommend that you read at least two more articles that explain how to buy a bank-owned house (preferably articles from a reputable source, … Banks will give these REOs to asset managers, who will in turn hand them off to realtors. Both terms refer to properties that have gone through foreclosure and have been … Find answers to this and many other questions on Trulia Voices, a community for you to find and share local information. This property then becomes a bank owned foreclosure, which is also commonly referred to as an REO (real estate owned) home. So, let’s shed some light on exactly what it means to be a customer-owned bank and how that puts Beyond Bank well ahead of major competitors. ... Not knowing about this lien could mean significant added costs to buying the property that you should know about before you close the deal. ... Well you may say owned by who? When a bank can't close a foreclosure sale at auction, it sends that property to its inventory. The home owner is supposed to approve offers, execute a contract, and then turn it into the bank for final approval. You should also talk to a real estate agent who is familiar with the process. The term "bank owned" refers to when a property goes through the foreclosure process (due to delinquent payments) and is acquired by the lender (after the property does not sell at auction). How to Buy Bank Owned Foreclosures. A short sale is a property where the home owner still owns the property. Time Frame. A: Real Estate Owned (REO) and bank owned mean the same thing. That's a good start, but you need to do more. … It means owned by the bank or lender. Bank Owned Definition. Bank owned foreclosures in inventory are called REOs, or "real estate owned.". When it comes to ease of buying a house, it makes a difference as to whether the bulk of homes on the market are mostly foreclosures.If a regular seller is selling in a market dominated by bank-owned homes, regular sellers need to compete on price with foreclosures, meaning that the seller needs to price a home in line with the prices of bank-owned homes. The bank has a lien on cheques deposited to the customer's account, to the extent that the customer is indebted to the bank. You can usually find such properties listed on the websites of major U.S. banks or in regional multiple listing service databases; in the latter case, you'll need to contact a real estate agent to view properties and submit a contract. A foreclosing beneficiary will typically set the opening bid at a foreclosure auction for at least the outstanding loan amount. Real estate owned, or REO, is a term used in the United States to describe a class of property owned by a lender—typically a bank, government agency, or government loan insurer—after an unsuccessful sale at a foreclosure auction. Foreclosed Bank Owned REO What Does it Mean and Where to Find Bargains ... Bank Owned properties are as they suggest homes that have been foreclosed and are now owned by the lender who made the loan. Auction. Customer-owned banking, also called mutual banking, is the embodiment of “the customer is always right” when it comes to financial institutions. Real estate owned, or REO, is a term used in the United States to describe a class of property owned by a lender—typically a bank, government agency, or government loan insurer—after an unsuccessful sale at a foreclosure auction. What does "Bank Owned foreclosure" mean? Realtors will then list these foreclosed properties and try to sell them like any other home. First, you can bid at the sheriff's sale or trustee's sale and if you are the high bidder then the property is yours. How to Buy Bank Owned Foreclosures. The bank must not disclose details of transactions through the customer's account – unless the customer consents, there is a public duty to disclose, the bank… There are two ways to purchase a foreclosure property. When banks receive the property deeds to homes through the foreclosure process , it's often because no one showed up on the courthouse steps to bid the minimum amount of the existing mortgage(s) or the bank started the minimum bid so high that nobody would touch it. The property is then offered to the public at a foreclosure auction and typically sold to the highest bidder. questions. St. Louis Real Estate Expert Jim Manning answers your questions about buying and selling property in the St. Louis area. Homes on a bank's books are called REOs, which is an acronym for "real estate owned." A foreclosure means the bank owns it, so a bank owned property means a foreclosure property. What is a customer-owned bank? A foreclosing beneficiary will typically set the opening bid at a foreclosure auction for at least the outstanding loan amount.