Buying an REO Property – My Experience

Credit and mortgage advice Forums Buying Your Home Buying a Home in Bay Area Buying an REO Property – My Experience

This topic contains 0 replies, has 1 voice, and was last updated by  dealpal 6 years, 9 months ago.



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    dealpal
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    1. Some listing companies will try to represent both the seller and the buyer so they will block all the other agents that don’t work for them. It’s probably illegal or unethical. But that’s the way it is.
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    2. Most REOs are not in a good shape. If you are new to buying homes, you need to add 20% more to the budget because you need to fix the house a lot.
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    3. Banks are the 5 ton rhinos in the room. They own this game. Whatever offer letter you sign means nothing. It’s basically a quote. The bank can take as long as they like to respond to you. When they do, they will not sign the CAR form. Instead, they will sign their addenda forms and ask you to sign it. This makes it very hard to back out of the deal.
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    If you are new to home buying, be very very careful of the above situation. There is a lot of debate of rent vs buy and stuff. Those are good ideas but each house is unique and you have to have data to make a good decision. In my experience, the agent hid information about the house, ignore requests to see the house before the bank responds, and etc.
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    Be very careful. It’s better not to get something that looks like a deal than to spend 200k more to fix something later.
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