Barnesville, GA
$560,000

STARFISH COMMERCIAL PARK

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Covington, GA
$335,000

Daycare Center Site

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Lithonia, GA
$185,000

Zoned RM-75 (Land Only)

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Stockbridge, GA
$240,000

2.308 Acres Zoned C-1 Comm.

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Getting a Mortgage on Bank-Owned Real Estate: Any Different Than a Traditional Purchase?

One advantage of a bank-owned property, or REO, is that it's easier to get ‘clear title’ than some other foreclosed properties. Typically, the bank will have negotiated with the IRS to remove any tax liens and paid any homeowners association dues.

Because of your ability to obtain a clear title, getting a mortgage on REO properties will be much the same as a traditional purchase. In fact, if the selling bank also holds the defaulted mortgage, you may find the terms advantageous and also get a good deal on the interest rate and closing costs. As with a traditional mortgage, the down payment required will vary.

With any real estate purchase, do your homework. Have an inspection done to be aware of any necessary repairs. Verify for yourself that there are no outstanding fees or taxes owed on the property, and that you're getting a reasonable price for the property based on its location and condition.

While different lenders do have differing policies on REO mortgages, the process of obtaining a mortgage on a REO (bank-owned) property is essentially the same as that of a traditional purchase.