REOS

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Jennings REOS
Logan Square
Avondale
Humboldt Park
Bronzeville
Hyde Park & Kenwood
Rogers Park
Portage Park
Wicker Park & Bucktown
Pilsen
Bridgeport
Chatham
Mount Grenwood & Beverly
Glenview
Skokie
Evanston

Q: What is an REO?

A REO stands for Real Estate Owned. In the REO world there are several types of REOs, which include Bank-owned properties, HUD REOs, Fannie Mae (FNMA) REOs. Also related to the REO business are Short Sales.

A Bank-Owned REO is any property that has gone through the foreclosure process and is now owned by the bank who made the original loan on the property. The bank becomes the property owner and offers it for sale to recover the loss on the foreclosure claim.

A HUD REO is any property that had an FHA loan that has gone through the foreclosure process. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim.

A FNMA REO is any property that had a FNMA insured loan that has gone through the foreclosure process. FNMA becomes the property owner and offers it for sale to recover the loss on the foreclosure claim.

A Short Sale results when a lender agrees to accept a loan payoff in an amount that is less than the amount they are due. Like the name suggests, the lender is paid less (or short) than they are owed. A Short Sale is not a readily salable asset because the homeowner is still party to the transaction and the process of negotiating and getting an offer accepted and ultimately closing a short sale is lengthy and fraught with emotion and delay.

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