Real Estate Owned (REO) Documents
The term Real Estate Owned (REO) refers to properties owned by the borrowers. REOs must be reviewed and documented in order to analyse additional liabilities that will affect the borrower’s ability to repay the loan. REOs must be disclosed in the Uniform Residential Loan Application Form 1003 as they can have liabilities that don’t always appear in the credit report. REO documents must be collected for each property owned by the borrowers.
REO Documents include:
Mortgage Statement
Tax Certificate
Homeowner’s Insurance (HOI)
Evidence of Insurance (EOI)
Master Insurance
Homeowner’s Association (HOA) Statement
A mortgage statement is a document provided by a lender to a borrower that summarizes the details of their mortgage loan.
On mortgage statements—
Context: Identifying the document.
Document title
Lender/servicer’s name
Key takeaways: Important information.
Borrower’s name
Amount due
Payment breakdown
Escrow amount (if escrowed)
A property tax cert is an official document provided by the county tax assessor's office that provides information regarding the property taxes owed on a specific property. County property tax certs are commonly used during real estate transactions to inform buyers or lenders about the property's tax obligations.
On the tax certificate—
Context: Identifying the document.
County
Property tax verbiage
Property valuation/assessment
Key takeaways: Important information
Property address
Latest year’s taxes
Homeowner’s insurance documents can be in the form of HOI policies, HOI binders, coverage declarations page, etc. They are provided by an insurance company to prove that an individual or entity has an active insurance policy in place.
On the homeowner’s insurance document—
Context: Identifying the document.
Insurance company logo
Document title with insurance verbiage: coverage declaration, declarations page, hazard insurance, homeowner’s insurance, policy page, insurance binder, certificate of insurance, etc.
Key takeaways: Important information.
Insured persons/entity
Property information
Policy number
Effective and expiration date
Agency and contact information
Coverage information
Policy premium
Additional interest/Mortgagee Clause
Loan number
Notes on Homeowner’s Insurance:
Additional interest must match the company mortgagee clause (below). Panorama Mortgage Group, LLC ISAOA ATIMA c/o Central Loan Administration & Reporting P. O. Box 202028 Florence, SC 29502-2028
If the dwelling coverage and extended replacement coverage aren’t sufficient to cover the loan amount, a Replacement Cost Estimator will be necessary. (In some states, it isn’t possible to request a Replacement Cost Estimator if it hasn’t been provided yet.)
Evidence of insurance refers to documentation provided by an insurance company to prove that an individual or entity has an active insurance policy in place. Evidence of insurance is abbreviated EOI. The abbreviation HOI is sometimes used to interchangeably refer to homeowner’s insurance policies or binders and evidence of insurance.
On the evidence of insurance—
Context: Identifying the document.
Evidence of insurance or property insurance header
Key takeaways: Important information.
Agency and contact information
Insured persons/entity
Loan number
Policy number
Effective and expiration date
Property information
Coverage information
Additional interest/Mortgagee Clause
Notes on Evidence of Insurance:
Additional interest must match the company mortgagee clause (below). Panorama Mortgage Group, LLC ISAOA ATIMA c/o Central Loan Administration & Reporting P. O. Box 202028 Florence, SC 29502-2028
If the dwelling coverage and extended replacement coverage aren’t sufficient to cover the loan amount, a Replacement Cost Estimator will be necessary. (In some states, it isn’t possible to request a Replacement Cost Estimator if it hasn’t been provided yet.)
Master insurance is a type of insurance that is typically required for condominiums and town homes. It is held by the homeowners association (HOA) and covers the common areas of the property, such as the roof, exterior walls, and hallways. Master insurance may also include liability coverage for the HOA.
On the master insurance—
Context: Identifying the document.
Document title
Insured party: Homeowner’s Association
Key takeaways: Important information.
Additional interest/Mortgagee Clause
Loan number
Notes on Master Insurance:
Keep in mind that master insurance can seem very similar to an HOI or EOI and be careful not to confuse them. The main difference is that in the Master Insurance the name insured is that of the Homeowner’s Association (HOA).
Additional interest must match the company mortgagee clause (below). Panorama Mortgage Group, LLC ISAOA/ATIMA 6623 Las Vegas Blvd. South, Ste F-200 Las Vegas, NV 89119
If the dwelling coverage and extended replacement coverage aren’t sufficient to cover the loan amount, a Replacement Cost Estimator will be necessary. (In some states, it isn’t possible to request a Replacement Cost Estimator if it hasn’t been provided yet.)
An HOA statement is a document provided by an HOA to its members that breaks down the monthly fees for properties within its homeowner’s association.
On the HOA statement—
Context: Identifying the document.
Homeowner’s association name
Member’s name and address
Payment history
Key takeaways: Important information.
Monthly dues