REO

What is “REO”?   The word stands for “real estate owned”. When a mortgage becomes delinquent and then falls into foreclosure, there is a foreclosure auction. Since there is normally very little equity in a property undergoing foreclosure, this auction is normally unsuccessful, so the ownership of the property reverts back to the owner of the mortgage—usually a bank, mortgage servicer or government agency. Most mortgage holders will have departments dedicated to the sale of REO.

Currently, NREV is focusing all of its attention on buying and selling REO in the white-hot single family market, where federal efforts to prevent mortgage foreclosure and other factors such as foreclosure moratoria and the Tenant Foreclosure Prevention Act have reduced the supply of new REO entering into the for sale market well above the excess demand for such properties—resulting in a spiking of single family REO prices.

NREV expects that in the future, millions of REO will enter the market and prices will plummet.  NREV will purchase such properties at rock bottom prices, lease them to qualified individuals and then sell them to such renters at affordable prices.

The millions of former homeowners entering the rental market will drive NREV into certain income-producing properties—multifamily apartment projects, which are likely to flourish, well before other such properties as shopping centers, industrial buildings, hotels and office buildings.

As the company is based on a group of experienced and well connected individuals, REO portfolio managers are able to identify and acquire the most lucrative properties. Links with nationwide outsourcers allow due diligence to be conducted rapidly, including negotiating inspections, deed transfer, and any other actions that arise in the acquisition of REO.

On the liquidation side, NREV’s sales team is able to quickly dispose of these properties, using a combined approach of valuation, management and disposition—wherever possible, into the hands of end users of housing—owners or renters.