REO & Distressed Property Loans

Direct Private Capital Group, Inc.

If you’re looking to buy a home in foreclosure or other distressed property, you’ll need to find a lender specializing in these types of loans.

An REO (Real Estate Owned) loan was owned by the bank or mortgage company but was foreclosed on because the borrower failed to pay the mortgage. The bank sells the home at auction and then has it listed as an REO property until they can sell it again. These loans are more common than you think and can be a good deal for buyers looking to purchase foreclosure homes.

Distressed property loans are also known as “fixer-uppers,” which means they need work before they can be sold. Sometimes these properties need minor repairs, while others may need major renovations before they’re ready for sale. The benefit of buying distressed properties is that they can often be purchased below market value due to their condition and low demand from other buyers.