Need-to-knows when buying REO

Q: My husband and I are in the process of buying a foreclosure property, as is. The property is not in bad shape, but it is missing the air-conditioning units and a few other items. The bank did sell us the property at a low price, but I am afraid of the hidden things that I don’t see. Can I make them give me a disclosure statement? Do they even have one?

A: You’ve clearly stumbled across one fundamental truth of buying an REO: You’re not buying from a person! You’re buying from an organization — an institution — a corporation. This has numerous, different implications at every point of the buying process. The decision-makers have totally different motivations and guidelines than individual sellers do.