Garet,

Congratulations on purchasing your first home! An REO could be a great investment. You will already need to have an approval letter from your lender and be ready to shot from your hip when your dealing with REO's. Banks are motivated but need to make sure their offers are strong with few if any contingency's.

Don't go at it alone especially when it's your first home and a bank owned property. What kind of financing do you have? There's still 100% financing out there with low interest rates. I also contribute a % of my % to my clients closing costs to make purchasing even more affordable.

I can refer you to an accredited and competent agent also. I can contribute a part my referral % back to you to help.

Kind regards,

I would agree with Morrie. Keep in mind that Washington State is a right of redemption state. Caveat emptor!
You may be better off as a first time buyer working with a good agent that knows the area. There are lots of good deals around that aren't foreclosures. For your first time, it would be very helpful for you to know the process. Buying a foreclosure can be VERY stressful.
Best of luck!
Barbara McMahon
Associate Broker
John L. Scott Everett

Make sure you are pre-approved for the mortgage loan, this will help tremendously where time frames are concerned... Not just pre-qualified but pre-approved, there is a difference.

Good Luck!

Garet: You have received great answers to your question. I think it is important, if you are planning to make an offer on this property to work with an agent that has experience with destressed properties. It is also important to know what the situation is with the property, Forclosure, Bank owned, or short sale. etc. The process can take much longer, depending on the lien holder, as far as getting approval to move on with the sale. Some banks are quicker to respond and other are not responding for up to 30 to 60 days. So be prepared for that. Buying a home now with the 1st time home buyers incentive, the current interest rate and the decrease in home values makes this a great time to buy. I am a Certified Destressed Property Expert and would be glad to help you.
Thanks
Morrie

Garet, You don't actually need an agent to buy the property to be clear, but it does help to have one to guide you through the paperwork - especially if you are a first time home buyer. You *might* also qualify for an $8000 tax credit for being a first time homebuyer if you meet other qualifications as well, plus I have seen banks even pay closing costs or do other things even if the listing says "as is".

The real question is what stage of foreclosure is the house in? Is it listed in the MLS or is it just in the beginning stages of foreclosure and available at auction? There are also some additional things to consider when looking at purchasing any distressed home - it is helpful to have someone help you who can make it easier to avoid common pitfalls. I have both listed and sold many REOs and I can tell you that they are not quite the same as a "normal" property - each one has its own little issues or things to watch out for. Issues can easily be avoided with correct paperwork and know how.

Feel free to email me if you have questions or can clarify more about the property.

Thanks so much and good luck!

You would buy it the same way as any other property - with a purchase and sale agreement through your agent. It may take a few days for the bank to respond and they usually have some additional paperwork to fill out.

Garet,

I can help you with this. I am located in Everett and have access to the paperwork needed for you to make an offer on the bank owned property. Please feel free to contact me. Since you are a first time homebuyer you would be eligible for the $8,000 tax credit also! Congratulations!

Debbie

You can buy a bank-owned property through your agent, just like you would a traditional purchase. There will be a couple of additional hoops to jump through with lender-specific paperwork. Most of the process is just the same as a regular home purchase.

Contact your buyer's agent and have them talk you through the offer process.