Definition
REO is property an institution owns because it took it back, at a foreclosure sale or by deed in lieu, and now holds as an asset it never wanted. The seller is a servicer or an agency rather than a person, and it sells on its own contract instead of the standard Florida forms.
How to read it
How to read it
- The discount is already spent. It was paid out in the waivers, the stamps and the deed before the price was discussed.
- A special warranty deed defends only against claims arising under that seller, so the building's whole history sits outside it.
- As-is means the inspection is information rather than leverage. It gets priced into the offer or it does not get priced at all.
- Read the contract before the offer. On an REO the terms are fixed and the price is the only variable.
Related terms
Related terms
All termsInvestment
Judicial Sale (Foreclosure Auction)
A judicial sale is the court-ordered auction that ends a Florida foreclosure.
MarketsDistressed Property
A distressed property is one whose owner has less time than the asset does.
ClosingTitle Commitment
A title commitment is the title insurer's written statement of the policy it will issue, and on what conditions.
Terms arrive with the writing.
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