Bud Bruening

Buying a home should never be frustrating. A lot of buyers will stay away from Short Sales because they can be a lenghy process while waiting for the bank approval. However, Bank Owned / REO homes are the cream of the crop right now. There are great deals to be had but you have to be ready and jump on a great deal when you see one. There are many programs out there right now that are only offered if you buy an REO property (HomePAth, HomeSteps, etc). Many of these programs have low rates, low down-payment requirments (less than FHA) and also have no Mortgage Insurance or appraisal. This is truly a great way to take advantage of a unique mortgage program that will not be around foerever. An FHA loan is another great way to buy an REO property. You shouldn't have any problems as long as the property meets FHA requirements which most banks and lenders try to do when selling their REO properties.

Anyone that told you to stay away from REO's may not know the benefits. You don't have to wait for the bank to approve a price like you do a short sale. They have already done all the leg work and know what they can take for the home. You're looking at a quick purchase with a move in date less than 30 days. Take advantage of these programs and the great deal you can get on a Bank Owned property. You may want to ask around and perhaps get additional advice from another local expert besides the one that you are currently working with. - Wed Aug 10, 2011