Do I Need Cash to Buy an REO?
It helps, but no. This actually reminds me of a client I had last year. She was looking for an inexpensive home to buy - and this was back when you could still buy homes with zero down - and she kept shying away from bank-owned houses. I didn’t understand why. Finally, when I asked her, she said it was because she thought you had to buy them cash! Thank God that’s not true or we’d be in real trouble!
You can buy bank-owned homes today with approximately 3% down which can be a gift from a relative if you are a first-time homebuyer. Keep in mind however that bank-owned houses more often than not are in need of repair and need work. The ones that do not require as much work and look good typically have a lot of competition from investors who - you guessed it - usually pay all cash.
