Are these properties essentially leftovers?

[Brian Garrett]

Since REO's are bank owned and have already gone through the foreclosure and auction process does that mean they are a less desired investment property? I would think that all of the seasoned and experienced investors who buy their properties via auction or at the courthouse steps would have picked the property up during the foreclosure process if it really had good opportunity. Especially in a competitive market where there are tons of investors looking for deals every day. What are some example instances where a property would go through the foreclosure and auction process and make it to the REO stage but still have potential to be a great investment opportunity? Was the property just overlooked? Perhaps listed incorrectly? Went under the radar?

[Roy N.]

Brain:

Leftovers are not always bad ... granted, if they've been in the back of the fridge for too long, they may be a little hairy.

Depending on the upset price when a property goes to auction, it may not be good deal, but after the lender has listed it for some time, their expectations adjust and you can often get a better price.