Need-to-knows when buying REO

REThink Real Estate

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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. Mindset Management Picture yourself as David vs. the Bank's Goliath. Go into your deal understanding that all the contracts will be written up as favorably toward your opponent as possible without being declared unconscionable. Kick off your escrow with the understanding t...