We just had everything repaired and put in new .....what thsi says is that they never fixed anything, there is deferred maintenance issues and probably latent defects caused by the lack of maintenance.

This has been my most frustrating aspect of looking at REO's.As a seller I must disclose any known defects, but banks can keep it a secret if they know about these problems.9 out of 10 REO's I look at have some sort of damage usually due to vandals.

With all the recent hullabaloo over robo-signers and clear title, I was wondering if any investors have experiences they wish to share. Apparently, REO sales have dropped by over 20% as a result of buyer apprehension....

My understanding with typical sellers is that they are required to disclose known defects if an inspection uncovers such items.

Many of these things are simply the outer cover on a defective product, once you get inside and see it for what it is.

If the Realtor has reliable third party information on the property and it's defects, he/she are required to disclose to other interested parties.

Our company does not think that under any circumstances can the defective drywall be left in place , These toxic substances must be removed then the shell of the structure must be neutrilized.

However, if you are bidding at an as is auction with no ability to walk if there are title defects then an indemnification letter should be provided regarding the prior unreleased lien.

If they have a tax lien, or any other sort of title defect, they must clear it up.

I would still want them to sign that seller is responsible for any preexisting defects to the pipes at the date of sale.