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Updated almost 15 years ago on . Most recent reply

Rochelle C.'s profile image
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Rochelle C.
  • Renter
  • from Crownsville, Maryland
  • Member since May 22, 2010
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Rochelle C.
  • Renter
  • from Crownsville, Maryland
  • Member since May 22, 2010
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Rochelle C.
  • Renter
  • Crownsville, MD
0
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Buying & Selling Real Estate

Equity in REO

Rochelle C.
  • Renter
  • Crownsville, MD
Posted

How is equity determined in a foreclosed, bank owned property and is there an easy method of assessing what it is or does the property require an appraisal first in order to know how much equity remains?

Thanks,
Rochelle

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Matt Kearney's profile image
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Matt Kearney
  • Real Estate Investor
  • from Springfield, Massachusetts
  • Member since Jul 27, 2009
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Matt Kearney
  • Real Estate Investor
  • from Springfield, Massachusetts
  • Member since Jul 27, 2009
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Matt Kearney
  • Real Estate Investor
  • Springfield, MA
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Matt Kearney
  • Real Estate Investor
  • Springfield, MA
Replied

You need to pull comparable sales to determine the After Repaired Value of the REO. Use houses that are in good condition and are not distressed sales.

Compare the after repaired value to what the bank is currently asking to see if there is equity in the deal and if it is worth pursuing.

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