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Investing Strategies

The 6 Stages in the Lifecycle of an REO

MortgageSure you’re familiar with the term: REO property. And you probably know that it means it’s a property that’s owned by the bank.

But do you know the lifecycle of an REO? How a property goes from being owned by a homeowner to becoming a foreclosure…

Hey Moguls, Matt Andrews to let you know that there are actually 6 stages in the lifecycle of an REO – and we’re going to go through each one in today’s lesson.

Knowing this info will better prepare you if and when you decide you to do a deal involving an REO. Knowledge is power, as they say! (But who’s they?!)

So, REO stands for Real Estate Owned and means that the bank or another lending institution now has ownership of that property.

To figure out it gets there, let’s dive in to the 6 stages a property goes in the REO process…

6 Stages of an REO

Stage 1: Private Ownership

So this is the beginning, right? Mr. Sam Homeowner bought and owns this…


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