Even if you’ve purchased homes in the past, buying Atlanta real estate that is in foreclosure or has already been repossessed by the bank (REO or “real estate owned” property) is a different process. For one thing, you can put a financing contingency on a regular sales contract. Not so much with a foreclosure.

If you’re buying a home from a homeowner, you may be able to get them to make repairs. That’s probably not going to happen when the bank is the owner, so consider the costs when you place your bid.

The

Equifax Personal Finance Blog recently posted an article by real estate expert Ilyce Glink describing some of the other differences. Entitled, “

Buying an REO or Foreclosure: What You Can Expect and What Can Kill the Deal,”  the article will help prepare you for the process.

According to Glink, one of the big differences between buying from a homeowner and purchasing a foreclosure is the attitude of the seller. When you negotiate with a current homeowner, they are probably emotionally involved in the transaction. Not only do they want or need to make a certain amount of money for their family’s well-being, but they also remember their daughter’s first steps “right there.” If you offer too little, you make them mad, and it’s hard to negotiate.

Banks, on the other hand, just want to minimize their losses on distressed properties. Glink says even though you’re technically helping them out, don’t expect them to help you out. The person handling your file is probably handling several more just like it. The bank will simply make the decision that’s in its own best interest.

What other differences are there? Visit the Equifax Personal Finance Blog to find out. If you’ve purchased REO properties before, tell us about it here and let our readers learn from your experiences.

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