REO PROBLEMS

LACK OF DISCLOSURE BY THE OWNER

Since the origin and history of the property is likely unknown by the lender or asset manager - no proper disclosures will be made or offered.  You will more than likely be required to sign forms stating that the seller has no knowledge of the property and cannot provide any insurance history on the property.  This is understandable considering the owner or asset manager has never occupied the residence, but you as the potential buyer are the one at risk if you buy a property that may be problem-ridden.  Caution on buying these types of properties should be taken, and we can advise how to properly inspect anything of material importance to you.

AS-IS CONDITION / ABILITY TO FINANCE PROPERTY

Most REO properties are sold in “AS-IS” condition.  The price of the home reflects any repairs that may be needed and most times you will have to pay these costs out of pocket.  You may not even discover the issues until after you have committed to a purchase price – and by then it’s too late!

REO properties are mostly homes that were repossessed from their previous owners.  As you may imagine, they probably didn’t take to much care in leaving the property in prestine condition for you.  Homes that are missing stoves, bath fixtures, carpeting or flooring in any room are usually considered “not financable”.  Imagine finding the perfect home and it is missing a stove and you can’t get financing – even with good credit and down payment!  Most asset managers will not allow you to do repairs to their property prior to closing due to liability reasons – so you may be unable to buy the home.  Recently, some lenders have come out with with special financing for their properties that may circumvent some of these requirements.

Please contact us for details.