UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev Thread | Next Thread
Author: inparadise Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 127714  
Subject: Buying an REO Date: 5/19/2013 6:47 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
This may not be the best board for this post, but a change in threads would be good.

I am looking at possibly buying an REO, cash deal. no contingencies other than a clean title with title insurance. It is a haul from home so I have not seen it yet, but it is on the same river as our other place and I know the area pretty well. Great location, possibly even better than our cabin. I look at it Friday and will want to be prepared to take quick action if I like it in person as much as I do on paper.

But I have never bought an REO. Do I need to worry about things like unpaid taxes or other liens on the property if I get title insurance on the place? What do I need to worry about from the POV of it being an REO? I am not concerned about the lack of inspections, water or septic. The price is such that I could replace all the critical systems afterwards and still have a good price on the house, and there is enough acreage to accommodate new systems. There have been some spectacularly cheap REO sales in this area, very inefficiently priced by out of area agents who don't want to be bothered.

TIA,

IP
cross posted on Real Estate Investing
Print the post Back To Top
Author: katiewa Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 125355 of 127714
Subject: Re: Buying an REO Date: 5/19/2013 10:00 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Check with the county for taxes and be sure they are accounted correctly on the HUD statement. Check with the state and county on liens.

At least where we are, REO's are no different from anything else other than the banks want you to sign additional paperwork saying you won't try to come back to them if the taxes weren't figured quite right, etc.

We've bought two in the last three years with no issues.

Good luck.
Kathleen

Print the post Back To Top
Author: CCinOC Big funky green star, 20000 posts Top Recommended Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 125356 of 127714
Subject: Re: Buying an REO Date: 5/19/2013 11:11 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
It's the foreclosing lender's responsibility to bring the property taxes current.

Print the post Back To Top
Author: inparadise Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 125357 of 127714
Subject: Re: Buying an REO Date: 5/19/2013 11:40 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
It's the foreclosing lender's responsibility to bring the property taxes current.

Thanks Cathy. That was my impression too, as opposed to buying something at auction on the steps of the courthouse. I will check at the township offices, though.

IP

Print the post Back To Top
Author: CCinOC Big funky green star, 20000 posts Top Recommended Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 125358 of 127714
Subject: Re: Buying an REO Date: 5/19/2013 5:34 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
That was my impression too, as opposed to buying something at auction on the steps of the courthouse.

Right...when you buy on the courthouse steps, all liens attached to the property become the reponsibility of the buyer.

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev Thread | Next Thread
Advertisement