Downey Savings, headquartered in Newport Beach, CA, is a federally chartered financial institution. Any mortgage lender that fails to sell a property at a foreclosure auction usually ends up taking possession of such properties. These unsold foreclosed properties held by a bank or a lender are referred as REO (Real Estate Owned). REOs are usually priced below their market value to result in a quick sale by lenders/Banks.

A lender holding REOs has to pay property taxes, hazard insurance, and maintenance expenses for the underlying properties. This is highly undesirable for banks, lenders, and financial institutions as these expenses deepen their already significant losses due to loss of mortgage payments, foreclosure expenses and Realtor’s commissions. A slow and declining real estate environment is another factor that motivates a lender/bank to salvage what they can from an REO property from selling it.

Downey Savings had originated a high volume of loans during the real estate boom years from 02 - 06. As most of these loans had weak underwriting guidelines, the percentage of default and foreclosure rates is significantly higher than what was expected. Savvy investors looking to buy residential properties with significant equity can expect to find them at Downey Savings REO Listings.

The site doesn’t have search features. It presents all the listings separated by the state they are located in.