Bank of New York REO Properties for Sale

Bank of New York Mellon (BNY Mellon) is a wholly owned subsidiary of the Bank of New York Mellon Corp. It is one of the largest mortgage servicing firms in the country. They employ a number of sub-servicers to handle default management processes on the mortgages they service.

The sub-servicers handle all aspects related to Bank of New York Mellon REO properties. Depending on the contract guidelines, servicers may have the delegated authority to approve loan and payment workouts, foreclosure proceedings and also REO sales. It is generally these sub-servicers, not Bank of New York REO department, that potential property buyers need to approach with their queries related to listed bank owned homes.

Bank of NY REO Inventory – Asset Management

Bank of New York’s REO inventory is made up of properties they service, but not necessarily own. In most cases, they are the trustee on the mortgage certificate and thus handle the default related processes. The mortgage company actually holding the note on a Bank of New York owned REO property can be found upon inquiry with the bank’s asset management department. Investors and home buyers often find it frustrating when trying to get in contact with the appropriate personnel in any major bank’s reo division, especially BNY.

Bank REO departments are notorious for their avoidance of curious, direct inquiries of real estate buyers. They usually don’t handle any direct queries as they usually outsource and contract out the reo listing and sales aspects. Due to this reason, Bank of New York REO properties are handled by reo asset management companies that specialize in effectively managing them.

The entire process involved in REO sales varies from bank to bank. A good number of reo listings owned by Bank of New York might not be available as they may also be disposed off in bulk reo deals. According to the data published by FDIC, the total value of BNY Mellon REO homes was less than $5 million. This is among one of the lowest among its peer group which comprises of the largest banks that home financing in the country.