Buying REO property from banks and Fannie and HUD is much different than buying homes from Joe & Sally Homeowner. First, the condition is usually much less. Second, you’ll be amazed at the extra paperwork! Usually 20-40 pages of additional addenda that have to be culled over. Some of the items you will find in there that will affect you;
- The over-priced re-key charge for crappy locks that you will throw away as soon as the rehab is done.
- The provision that says you cannot resell for 60 or 90 days.
- The per diem fee if you don’t close on time.
And of course pay attention to your sales price, earnest money and closing dates. Sometimes they change them in that tiny type and if you are not paying attention, well….