How is it possible to buy a REO property (House) for $100.00? Please explain.

Asked by Cynthia Ann Desanto, 33936 Sat Apr 11, 2009

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Tammy Rodrig…, Agent, Lehigh Acres, FL
Tue Jan 12, 2010
Dear Cynthia,

Some of the advice given to you is prudent. However thousands of homes are being sold as REO very successfully and good deals should not be overlooked soley for the reasons that were mentioned in another answered.

It would not be a bad idea to do your own title search if you feel enclined to, but if you have title insurance, that will cover any issues you have that may or may not (most likely will not).

My advice is to seek a qualified real estate agent and if you feel more comfortable also a real estate attorney.

Best of Luck,
Tammy Rodriguez
AAA Realty LLC
239-368-8520
tammyjrodriguez@gmail.com
Web Reference:  http://www.aaarealtyllc.com
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Tom Teece, , Lehigh Acres, FL
Mon Apr 13, 2009
Hi Cynthia,

I'm not sure where you saw or heard this price. But the phrase, "buyer beware" comes to mind.

Unfortunately, this phrase is true for any bank-owned REO property sold with a "Special Warranty Deed".

The "Special" part of the Deed may in fact leave the property worthless, unmarketable and not eligible for financing. Or even worse, there may be clouds on the title that the new owner inherits with the property. Some "Special Warranty Deeds" come with provisional clauses restricting the new owner from reselling or leasing the property for a period of time.

Cash buyers are particularly vulnerable to problems relating to a purchase of a bank-owned REO. Ask for a copy of the bank's title commitment. And make sure to purchase your own FULL title search. Do not depend on the bank's title company. It will cost $ 100-200, but it could save you thousands and a total nightmare.

Best regards, Tom
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