Hello:

Here I am, purporting to be an expert in real estate matters... However, I don't know as much as I think I do... My son is looking for property. He avoids REO's because he said they are only sold with a minimum of 25% down, and stellar credit. He qualifies for a conventional loan but doesn't have 25% down.

I thought REO's could be financed the same as any ole real estate. What am I missing?

excon

From what Im seeing there is nothing to contradict what your line of thinking is. Its just a different type of transaction is all.

Ref:

Bank-Owned Properties and REO Frequently Asked Questions - RealtyTrac (http://www.realtytrac.com/foreclosure/bank-owned-reo-property-faq.html)

Often if you are dealing with bank owned property, they have a lot not even listed and a lot that is not being cared for.

You should get one of the best deals there, Often the issue is the bank agreeing to it, ( getting to the person to OK or call you back) but I just bought a bank owned property about 9 months ago, ( sitting in it now) and I could almost name my terms. I got it for 10,000 less than the bank loan was on it. Now of course you don't get any disclosure since they have no knowledge of the property