Under contract on a REO

[Dave Brooks]

I am under contract on a REO and just wanted to get a feel for whats next. This is my first foreclosure. The house is in really good shape although missing all of the light fixtures and kitchen appliances.

My plan is to finance it. What are some common pitfalls I may face at this point? There are some experienced people on this forum... after contract is signed how often do these foreclosures end up working out?

The one thing I am slightly confused about. Is the lender going to require an inspection? Or just an appraisal? The appraiser will determine if repairs need to be made? I don't know much about the appraiser world... but how thorough are they? For instance are they going to go up in an attic? Are they going to turn on the A/C or heat to see if it works?

What type of stuff is an appraiser going to squawk at? For instance, it's missing all it's toilets (well it has one) and kitchen appliances. Is this going to hold up my lender from issuing the loan? Are they going to say "we want kitchen appliances before giving you the loan"?

If that is the case, how much of a hassle is dealing with the bank that owns in (nationstar). I can't exactly waltz in to the place and do any repairs since they own it until closing.

Obviously you can see I am new at this, any thoughts or advise would be appreciated!

[Allen Fletcher]

@Dave Brooks

FHA and VA loans require the home to be move-in ready upon purchase. Conventional loans usually do not require that a home be habitable, but it really depends on what your lender says. The appraiser will just note the things that are missing and adjust the price accordingly.

Regards,

Allen Fletcher