Foreclosures result from a default on a mortgage loan when a homeowner defaults on a mortgage and the mortgage lender seizes the property. REO (Real Estate Owned) properties represent possessions of the bank that have been assumed to be put up for sale. While prices are usually attractive, these properties are typically for sale “as-is” and they can range in condition greatly. Investors must take the utmost care when coming across a purchase, carry out inspections, and review contracts carefully.
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