Is purchasing an REO different than purchasing from a regular seller?
Yes. REOs are owned by corporations not individuals. This leads to significant differences in various aspects of the purchase, including transfer disclosure requirements. Banks are exempt from providing a Transfer Disclosure Statement on REO properties.
What about buying at a "Trustee's Sale" or "Foreclosure Sale?"
When buying a property at a trustee sale, you should do ample research and use extreme caustion. There are no refunds. Homes purchased at a Trustee's Sale are sold "as-is" for cash. That could include existing liens and even current occupants that need to be evicted.
An REO is a much “cleaner” transaction. The REO property did not find a buyer during foreclosure auction and the bank now owns it. The bank will see to the removal of tax liens, evict occupants if needed and generally prepare for the issuance of a title insurance policy to the buyer at closing.
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