How Do You Buy A REO Property With An FHA Loan?
REO properties are real estate properties that have been foreclosed on by the Department of Housing and Urban Development (HUD) for default on a prior FHA loan. These properties can be very difficult to purchase, and while the come with some great incentives above and beyond the price, it is important to understand the process. Find a Realtor (see Resources below).All REO property purchases require Realtor involvement on both sides of the transaction, so it is important that you have representation. It costs you nothing to hire a buyer’s agent, as their fees are paid by the seller. Locate REO or foreclosed properties with the assistance of your Realtor. Your Realtor will have access to all of the available REO properties in your market area. Ask the Realtor to email them to you or visit with them in person. Select several properties to view in person that will meet your criteria. View properties and select the ones that you would like to place an offer on. It is wise to bid on at least
