The Real Estate Encyclopedia
What Is Involved in Buying an REO?
Category - Mortgage Questions - Foreclosure & REO FAQ's

Before investing in an REO, have the bank provide you with the legal disclosure documents covering the property.  Read these documents closely and have an attorney interpret them, if you are not familiar with the process of buying a foreclosure.  Also, visit the property and conduct a professional inspection to identify the condition, structure and damage to the property.  If the repairs needed represent a high investment, you may be better off finding another property, unless you can negotiate a low enough purchase price to warrant the investment. 

Investors dedicate funds (often cash), work, time, and effort when buying a foreclosure or REO.  Therefore, the price must be far enough below market to justify the risk, including cost of repairs and marketing.

Most foreclosures have been poorly maintained, may have tax or title issues, may need substantial repairs, which cost a significant amount of money.  Therefore, thorough research will protect you from acquiring the wrong property. 

 
Category(s)
Mortgage Questions - Foreclosure & REO FAQ's
Home Buying Questions - General Home Buying FAQ's
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