REO property not able to get bank financing

[Christopher Hunter]

Why is a REO not able to get bank financing?

[Marina Draper]

It depends on the condition of the house, if there are any flaws and unsafe issues, the bank will not finance it as they can't resell the house afterwards. The banks usually resell mortgages to Fannie Mae or like, which have strict rules on the mortgage, so they just follow the guidelines. Also, it needs to appraise at the certain amount to be able to get financing.