Buying an REO Property is often a great alternative for investors compared to buying in the "retail" market. But buying an REO property is different than buying in that market which most people don't understand.  The same general procedures are followed but many of the sellers have different guidelines or regulations that must be adhered to in order to close on the home you put an offer on.

There are a few requirements that are "across the board" when submitting offers on REO or bank-owned homes:

1) Proof of Funds
    Always will be required on an REO offer. Most lenders will not even respond back if you do not have this with the offer. Proof of funds could be a bank statement saying you have the funds to do the transaction or a pre-qualification letter from a lender.  Any offers lacking a proof of funds will NOT BE PRESENTED TO THE SELLER UNTIL RECEIVED.

2) Sold "as-is"
    All properties are sold "as-is." Which means the seller will not do any repairs or upgrades to the home in order to sell it. Any inspection is for "Informational Purposes Only." Seller generally only considers repairs if an inspection results in defects that affect an occupants safety or the home's habitability.

3) De-winterizing
    Properties will be winterized when listed per sellers request. If a buyer wants to do an inspection and needs the property de-winterized, buyer will need to take on that expense of de-winterizing and re-winterizing the property. Listing agent must also be notified 2 days advance of this happening.