Real Estate Owned or REO: "A property that reverted back to the bank after an unsuccessful sale at a foreclosure auction."

Banks almost always want to sell a property in "as is" condition. Most (but not all) will provide a Section 1 pest certification, but not unless you include it in your offer and negotiate the point.  Just like any other seller, banks will allow you to get all the inspections you want (at your expense), but they may not agree to do any repairs. Even though they stated "as is," and depending on the situation and purchase price, you may want to ask to make repairs or give you a credit after you've completed your inspections.

Note that banks are exempt from the California Seller's Transfer Disclosure Statement (TDS-14), they have not lived in the property. But the Real Estate agents, are required to provide you their disclosure statements - "Agent Visual Inspection. Submitting offers on an REO property should not be compared to a transaction for a property that is not an REO, and may require additional documentation.

Debra Enos is your Real Estate professional in the Greater Long Beach. and  Orange County areas. If you are looking to buy a Bank Owned / Foreclosed property or seeking other information about Real Estate in Long Beach or the surrounding areas, Debra is your Real Estate Resource!

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