What Happen With The Original Note?
What happen with the original note when the property is foreclosed and now is an REO?? Does the lender has the original note?? can they sell it??
What happen with the original note when the property is foreclosed and now is an REO?? Does the lender has the original note?? can they sell it??
Once the property is an REO, there is no note on it.
The bank swapped the note for a deed.
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Every sale affects comps regardless of the circumstance surrounding the sale.
Appraisers very seldom look behind the sale to try to understand WHY the price was lower than similar surrounding properties.
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Can I buy the underlying promissory note from the REO and have both the mortgage and the beneficial interest in the Deed of Trust assigned to me???.
Quote:
On 2008-05-25 12:01, marcoolivas wrote:
Can I buy the underlying promissory note from the REO and have both the mortgage and the beneficial interest in the Deed of Trust assigned to me???.
You are not listening to what we are telling you.
If the property is an REO, the lender that took the property by foreclosure owns the property free and clear. There is no underlying note, no mortgage, no deed of trust. Those were all extinguished by the foreclosure.
I think you are confused by the term "REO" and are using it incorrectly. REO is an abbreviation for "Real Estate Owned" which is really a shortened form of OREO -- "Other Real Estate Owned". "Other Real Estate Owned" is a financial statement term the lenders use to report the asset value of real estate owned by the lender that was acquired through foreclosure.
When you use the term "REO" in these forums, it is generally understood that you are referring to the OREO property that a lender owns and not to the lender itself.[ Edited by NewKidInTown3 on Date 05/25/2008 ]
Ok so all the REO can do is just sell the property as usual??? how can I buy that property without affecting comps??. Like when you buy the note, you have the rights of that property.