Financing REO

One great advantage to buying REO property is the price.  REO properties are generally sold for fair market value, minus the cost of necessary repairs, which can make for a very attractive sale.  REO properties also have the advantage of being financed traditionally.  Frequently, people find the foreclosure market very attractive but they are intimidated by prospects of paying cash for a property, which is frequently what the terms are at a foreclosure auction.
 
If you are interested in purchasing REO property you will need to qualify for a loan in the same way you would for buying a traditional home.  You will be expected to provide documentation about your financial situation and if your loan is approved you will pay your mortgage in the same way you would any other mortgage.  The only real difference in buying REO property as opposed to traditional property will be in the length of escrow.  Typically REO property will have a shorter escrow.  The length of time will vary from state to state, but REO properties typically close in between 30-45 days.
 
Stay tuned to the Blog for more information about viewing and inspection REO properties.
The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances.  Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action.  For further information or questions please contact Gabriella@IARNY.com