Frequently, a property description will state that it is or isn’t a “REO” and I’ve had Buyers ask me what it means.
“REO” refers to Real Estate Owned by a Bank or Corporation that has been acquired through the Foreclosure process also known as Bank Owned Properties.
Other related terms that you will often see included in Foreclosure listings include:
“POF Required” = Proof of Funds Required which means that, along with your Offer, you’re required to submit information that verifies that you have the Funds or Financing to purchase the property. If you’re Financing the purchase, you will need to send a full Pre-Approval (not a basic Pre-Qualification) from your Lender AND a Bank Statement or Financial Statement showing that you have Cash for the Down Payment and Closing Costs. If you’re purchasing with Cash, you will need to include a Bank Statement or Financial Statement showing that you have Cash for the full purchase price and any related Closing Costs. The Statement verifying your Funds and your Pre-Approval Letter must be dated within 30 days of the Offer submission date.
“DU Approval Required”= A Pre-approval Letter from your Lender that has been processed through the point of Desktop Underwriting.
“Send copy of EMD”= EMD refers to the Earnest Money Deposit/Good Faith Deposit that’s required when placing an Offer to purchase a Home
Related information: