Tips for Buying an REO Home From the Bank
Banks that have taken back property in foreclosure have wised up. Rarely will you see a home priced right at market value. Much of the time, the REOs are underpriced, sometimes by many thousands of dollars. Banks do this to create a bidding war among buyers. And it's working.
First-time home buyers are competing with investors and often against investors who can afford to pay all cash. If a buyer pays cash, there is no appraisal, no loan contingency, and very little else that could prevent the transaction from closing. So, where does that leave home buyers who need to get a loan? Generally, at the bottom of the rejected pile. But there are ways to spice up your offer and make it more attractive, without overpaying for the home . . . read more about REO tips.
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Comments
My credit score just dropped,how can i buy a foreclosured home with my score down in the 600 now? this have never happen before?
Some REOs make borrowers submit mid FICOS now with a purchase offer. So, for those, you’re probably out of luck. But not every REO has this practice — and FHA has risk-based pricing, so, you might be able to qualify for an FHA loan.
Same As you Guys, I sell Pasco REO properties. REO properties are being in demand today because of its affordability that’s why many people considered acquiring one.