As Is

• Most REO properties are sold on an "as is" basis. This means that the seller will not make any repairs or improvements to the property once it is under contract. Getting an inspection on an "as is" property is more for peace of mind than repair negotiation.
  
  

Title Search

• When a property becomes an REO property as a result of a foreclosure, there is a high likelihood that there are outstanding liens on the property that need to be paid off. Due to this, a title search is necessary and will be done by the escrow service that will close on the property in order to insure that the property will be able to transfer ownership without any snags in the process.
  
  

Addendums

• REO properties often come with multiple addendum to the contract from the lender owner. The lender is making certain that the buyer understands the REO purchase process and will not hold them liable for issues with the property once it is closed and funded.