Updated over 10 years ago on . Most recent reply
1st Cash REO Purchase, advice?
Im looking for any advice for steps to take before making a cash offer on an REO Ive been looking at. Is there any possibility of tax leins or second mortgages etc still being on the property? The property is priced at $40k, it was foreclosed on 3 months ago, on market for 2. Im going to pay cash and fix it up for a SFR, or add units down the road or possible flip. Im looking for general advice about this possible transaction, I have purchased properties before but never an REO cash deal. Thanks
Most Popular Reply
Just because a title company is involved doesn't mean that title insurance will be offered. If you're only paying $200-300 for the title company's services, you can bet that that's the case. Get in touch with them early on in the process. Title companies often discover that they're missing documentation right before closing and they don't take action until delay is inevitable, so get out ahead of it.
When you make your offer, keep your earnest money deposit low (think $1000-2000 depending on the price) and always demand a ten day inspection period.