Can I use the seller(the bank) as my mortgage lender for REO home?

Asked by Dan, 60601 Mon Mar 23, 2009

Hi,

I have bought a bank owned home (REO) and am in the process of shopping mortgage. After I've got some quotations from both local mortgage brokers and online brokers, I found the best offer was from the the bank (the seller of the home). If I am going to use the bank as my lender, is there anything special that I need to pay attention to?

For example, if I still ask the lender (the bank itself) to do title search, is this good?

Thanks a lot for any advice.

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Chris Clark, Agent, Saint Charles, IL
Mon Mar 23, 2009
Dan,

It's fine to use the bank for your lender. You will still have all the rights and protections that come along with any home purchase. You don't need to worry too much about the title search because that will be performed by a third party title company anyway.

Banks make money by lending money, so there is a good chance they will offer you a better deal because they have the opportunity to make back some of their loses by lending you the money and collecting interest over time.

Just make sure you have a good real estate attorney involved in your purchase so they can look out for your best interests. If at all possible, have your attorney try to get the bank to transfer ownership to you with a special warranty deed instead of a quit claim deed.

Good Luck!
Chris
Web Reference:  http://www.clarkhometeam.com
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