Action to REO

[Chris Viola]

Hi all-

I am just trying to understand the REO market better.

When does an auction that is in foreclosure property become an REO property?

Thanks

[Lisa Kohl]

Homes on Auction.com/ homesearch.com and Hubzu are not "foreclosure" auctions. These homes have already been repossessed by the bank. 

These homes will keep rolling over time after time on the websites because the bank's reserve price has not been met. They do not make this information public. Each time an "auction" on one of these sites passes with no winner bidders- the bank is possibly lowering the reserve although in some cases they pop it back on at a higher price. I've seen all types of things happen on these sites. Just know where your numbers are and account for all the fees when bidding.