Services

Daunno Realty’s trained agents handle REO listings and sales in Central and Northern New Jersey. In addition to marketing and liquidating these properties, our qualified staff can help with re-keying the doors, boarding up the windows, winterizing and complete home trash outs. Contact us today for more information!

Frequently Asked REO Questions:

What is REO or Real Estate Owned Property?
Real estate owned or REO is a class of property owned by a lender—typically a bank, government agency, or government loan insurer—after an unsuccessful sale at a foreclosure auction.  A foreclosing beneficiary will typically set the opening bid at a foreclosure auction for at least the outstanding loan amount. If there are no bidders that are interested, then the beneficiary will legally repossess the property. This is commonly the case when the amount owed on the home is higher than the current market value of this foreclosure property, such as with a high loan-to-value mortgage following a real estate bubble. As soon as the beneficiary repossesses the property it is listed on their books as REO and categorized as a non performing asset.

How does a property become REO or Real Estate Owned?
When a property goes into a distressed status (i.e. the borrower/home owner misses mortgage payments) the beneficiary will want to determine the amount of equity that the property has. A popular method to determine the equity is to obtain a Broker's Price Opinion (BPO). Daunno Realty has set up www.NJBPOs.com in order to help banks expedite this process.

Based on the amount of equity that is determined from the BPO, the bank will decide whether to allow a short sale (if requested by the homeowner). If no short sale is requested by the home owner, the beneficiary will continue the foreclosure process. If the beneficiary is unable to sell the property through a short sale or at a foreclosure auction it will now become an REO property.

What happens once the home is officially REO, Real Estate Owned, or Bank Owned?
The first step is to remove the liens and other debts on the home or building.  From there, the beneficiary will go through the process of trying to sell the property.  This is where Daunno Realty comes in. Our REO realtors specialize in certain zip codes and have mailing lists of clients willing to purchase these properties already lined up.  These investors will often purchase REO properties because of discounts offered to compensate for the condition of the property.

How are the properties secured and maintained?
Bank REO properties are generally in poor condition and need repairs and maintenance, both to satisfy property upkeep laws and to preserve and prepare the property for sale. Maintenance is generally the responsibility of the mortgage servicer and Daunno Realty has the tools to help:

Our Services Include:

• Securing the property (i.e. changing locks and boarding up windows and doors)
• Debris removal (Full trash outs)
• Property maintenance (winterizing, grass cutting, etc.)
• Rehabilitation through Daunno Development if needed or warranted

In addition to preventing damage to the property, securing a property is used to prevent or discourage re-entry by former occupants or by squatters, which can both damage the property and require legal proceedings to remove, further complicating a sale.