Foreclosed property

Has anyone purchased or considered purchasing a foreclosed or bank owned (REO) property?

I'd like to hear of your experience!

Thanks

my sister looked into one...


the reason they stayed away was b/c they heard that people do awful things to the house when they know its going to be repossessed....like pour cement into the toilets, etc...and you cannot inspect the home...or go into it before you bid


if the price is good...you may want to take that risk...b/c the money you save can be used to fix the place up...

Thanks, Erica.

I've heard the same horror stories!

One property we are looking at has already gone to auction and the lender (bank) has taken over possession. We've been through the home a couple of times so it's not sight unseen, but it is an 'as is' sale.

I'm encouraged by the fact that we can actually go in the home-we can assess the condition of the house and use estimated repair $$ to work up some numbers to make a bid. The as-is part has me a bit nervous.

Anyone else?

There is a difference between bidding at the steps for a property and buying 'REO'.

If you bid, you are buying sight unseen, you must have 10% at the sale and must be able to close within 30 days. The bank does not own the property, and you will get a deed from the Referee. You ideally need to have all cash b/c a mortgage co. wants to do an inspection(which you can't get), and you rarely get a commitment that quickly. If the property is occupied, you would have to do an eviction on the occupants, which in some cases can take a very long time. Judges have a lot of sympathy for occupants, not owners.

An REO sale is already owned by the bank and marketed by a realtor. Sometimes the home is occupied, most times not. If it is an all cash deal, they want a closing w/i 30 days, if not then a commitment within 30 and close w/i 45. The bank makes no representations as to the property, and sometimes there are some messy liens. Also, there can be title issues with regard to the foreclosure.

I have done REO closings and foreclosure for about 4 years now, so I know a lot about this. Feel free to fm me if you have a specific question.