Why do banks want to get rid of the REOs?
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Question by Lucy Davis: Why do banks want to get rid of the REOs?
I know they don’t want to keep them since they are not in R E buisness , and they want to keep them off their book. But what else?? Thanks.
Thanks for the help.
Answer by LT
In addition to the reasons you listed, a bank may also be more willing to sell at a below-market price if they have a high number of foreclosures, which are assets that aren’t generating income.
The flip side is that the banks still want to get the best price possible for the property and have no interest in trying to get rid of the property cheaply. The bank wants to at least break-even on all the costs it may have put into the property.
Hope this helps.
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