Banks must demonstrate to shareholders and investors that they worked hard to get the best price for the property, so it’s likely your offer will be met with a counter offer. It’s typical for an REO offer to be reviewed by several individuals and companies, which means it can take weeks to get a response. Patience requiredīidding on an REO isn’t quite like making an offer on a privately-owned home, where owners generally respond quickly. Be sure you add in the costs of renovation. Make certain your offer price is comparable to the recent sale prices of similar homes in the neighborhood. Similarly, an REO property in decent shape should not be subject to a higher mortgage rate.ĭo your homework before making any offers. If the property you’re considering is in good condition, the fact that it’s an REO shouldn’t make it more difficult to qualify for a loan. VA loans, for example, can be more difficult to obtain if the property isn’t in move-in condition. Understand that a significantly damaged home may limit your financing options. Even better: Get pre-approved by the lender that owns the property. Get pre-qualified for a loan if you’re serious about buying. Search public records for liens and outstanding taxes, then hire a title company to run a full, insured title search before closing the deal. Title searchīanks generally clear the title before listing a home - but never assume this is the case. Hire a professional to inspect the home before committing to purchase. Get an independent appraisal to determine a home’s true market value.Īdditionally, understand that REOs - some of which have been vacant for months or even years - generally are sold “as-is” with no warranties of any sort. Some REOs are discounted because of severe damage or location, while others may not sell for much of a discount at all. Banks are in business to make money, so they price their homes competitively. Most other online foreclosure listing services charge a fee.īe aware that REO properties are not automatically bargains. You can find foreclosure properties by using search filters on Zillow’s search and maps page.
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