Just put a REO under contract

[Sharad M.]

Hello all,

I had put an offer on an REO 10 days ago and I just got a call from the listing agent that my offer has been accepted. I looked over the purchase agreement and it states that the deed will be transferred via a Special Warranty Deed. From what I understand, SWD are standard when purchasing a REO.

This will be my first REO purchase, my previous properties have been Non-REOs. So what items do I need to be careful about? The property is a 4-plex and I will be holding it as a rental.

Appreciate all the replies.

[J Scott]

If you use the seller's closing attorney, they will generally pay for your title insurance (though in my opinion, you should use your own attorney and pay for it yourself).

As for the deed, the limited warranty deed you'll get from the seller basically warranties the period that the seller owned the property, not before (as opposed to a general warranty deed that warranties past ownership as well). As long as you have title insurance (and a good title search), you shouldn't have any concerns.