Real estate owned (REO) by a lender, such as a bank, that is currently inhabited by occupants presents a unique situation in the property market. This typically occurs after a foreclosure when the previous owner remains in the residence. For instance, a family might continue living in a house after the lender takes possession.
These properties represent an investment opportunity for buyers interested in acquiring potentially below-market-value assets. However, they also come with complexities related to existing tenancy. Historically, the rise of REOs often correlates with economic downturns and fluctuating market conditions. Navigating the legal and logistical aspects of acquiring and managing such properties requires specialized knowledge and expertise.