Question by Yoli: What’s the difference between REO properties and HUD owned homes?
What incentives do buyers get when buying REO properties? Is there a down side to buying REO’s? What’s the difference between buying an REO vs a Hud (repo) home?
Answer by glenn
REO stands for real estate owned. It is a name that banks use for property that they own. They have normally repossessed it.
Hud also owns homes and they also normally get them thru repossession.
Neither of them are often in good shape. They are normally both difficult to do a good inspection because you have no history of disclosure on them. No one knows anything about them so they can’t disclose anything. They could have been a meth house or anything could have happened to them.
I would suggest to you that you should get a buyers agent and look at the REO’s the HUD’s and the “regular” inventory. In North Texas they are all in the MLS. Compare them all and decide for yourself which give you better value for the money. (you will likely be surprised).
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