The process of buying a bank owned (REO, Real Estate Owned) property is pretty straight-forward. The properties are listed with a brokerage firm and appear in the multiple listing. Your buyer agent can show the property and negotiate the purchase for you as they would in a traditional transaction. You must have a mortgage pre-approval letter or proof of cash.
Caveat emptor (buyer beware) applies to any real estate purchase, especially so with an REO. Since the property is exempt from OH Property Disclosure documentation, you must be diligent with thorough private inspections. Some homes have been vacant for a long time and with no heat. You also need to investigate water, sewer and utility payments, any pending special assessments, zoning and use restrictions, point-of-sale inspection repairs, occupancy permits, etc.
The bank wants to remove the home from its inventory, but is not going to give the house away. They have investors and shareholders they must answer to and are obligated to get the best price possible. Expect to negotiate. You may be in a multiple offer situation, as asset managers often hold out for the best deal.
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