Buying guides
Buying a bank-owned (REO) home in the US
When a foreclosure auction doesn't sell a home, the lender takes it back and lists it with a local agent. These bank-owned homes (known in the trade as 'REO', real estate owned) can be good value, but they're sold as-is.
Sold as-is
The bank won't fix anything. Make your offer subject to an independent home inspection and use the inspection period to check the roof, plumbing, electrics and foundations.
Bank paperwork
Banks add their own contract addenda and can take longer to reply than an ordinary seller. Read the addenda carefully, particularly deadlines and who pays which closing costs.
Title and closing
Buy title insurance and use your own title or escrow company where the contract allows. Check for unpaid homeowners' association (HOA) dues, liens and property taxes.
Financing a home that needs work
Some homes won't qualify for a standard mortgage until they're repaired. Government-backed renovation loans such as FHA 203(k) can cover the purchase and the work.
Government homes
The US Department of Housing and Urban Development (HUD) sells homes that had government-insured (FHA) mortgages after foreclosure, and often gives owner-occupiers first chance to bid. Its current homes are on HUD Home Store (hudhomestore.gov). Many are also listed with local agents, so they show up among the bank-owned homes in Explore.
General information only, not financial advice. Rules and lender criteria change; confirm with a regulated adviser.