REO is an acronym used by financial institutions, which means
Real Estate Owned, and has come back into the bank's portfolio via a foreclosure process. The purchase of a REO property is much different than conventional homes. Most REO properties are sold as is with the seller making no repairs, and is addressed in their corporate addendums stating that the buyer will purchase as is but still have the right and contingencies of inspections. Furthermore, the seller does not provide a sellers disclosure statement, as they have no information on how the former owner was maintaining the property other than what is evidenced by the home's current condition.
It is important that the buyer realizes that a REO property is owned by a corporation and replies to that offer may take anywhere from 2-5 business days. Many times the offer process has to go through different levels of management for a counter proposal or acceptance and the buyer must be patient for the corporation process.
For additional information, please call the DayBreak Group at (909) 945.0602 or visit our web site: www.DayBreakGroup.com