Dangers of Foreclosures Pt. 2

Three letters you should become familiar with if you are in the market to purchase foreclosures, R-E-O. REO stands for "real estate owned." REO properties are owned by the bank after going through the foreclosure process.

Typically in a REO sale, there aren't any disclosures. Basicslly the seller is not there to disclose the in's and out's about the property. This includes but is not limited to pre existing issues about the property that may need repairing and/or replacing all the way to particular neighborhood association restrictions.

Make sure with your agent to learn as much as you can about the home and the neighborhood. If the property sold in the past five years, your agent may be able to obtain past disclosures or obtain city records. Also make sure to always double-check your title work.