BiggerPockets

Buying REO with Financing?

Wednesday, March 09

Are you looking to buy an REO using financing?  Find out if the seller offers financing.  Often the bank that owns the property will offer financing with some incentives if you go with them for the loan.  For example, GMAC Mortgage takes back a property by foreclosure.  After the eviction is said and done and the property is ready to hit the market, a GMAC Mortgage Rep will send the listing broker a stack of flyers to place in the property stating GMAC will waive the application, appraisal and credit report fees.  This could amount to $1,000 savings, give or take.  The loan also has preferred processing and pricing.  That's pretty cool if you're a first time buyer and putting down nearly everything you have saved, which is not uncommon.  Fannie Mae, Chase, Wells Fargo, Bank of America all have some incentives if you use them for financing.  Ask your agent who the seller is and if they offer financing on the property...Could save you some money. 

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