REO fall through at closing rate (appraisal, foreclosures, mortgage, mortgage)

[moneymm22]

do REO homes fall through at closing more often than regular home sales?

someone just told my wife that foreclosures in general always fall through at closing , especially bank owned homes, how accurate is this?

[Pfhtex]

It's really not accurate.

I close quite a few REOs.

Even the myth that "they take forever" is no longer true.

You just need the right loan type for the property condition, and to be prepared for the bank that owns the property to not do anything you ask in regard to fixing anything, giving a seller credit, etc.

I think a lot of buyers get with inexperienced loan officers and try to go with an FHA loan , then the appraisal comes in, then you get the FHA decline and for some reason the buyers can't switch to a conventional loan. Sometimes also there are seasoning issues, but that can generally be mitigated.

[FalconheadWest]

They don't fall thru any more or less than a traditional sale would fall thru...

No offense, but you and your wife seem to bring on a lot of drama. You have had post after post of issue after issue... if this falls thru, it's probably on your end, not the bank's. Stop living in the "what if" frame of mind and live in the "this is what is happening in our situation" frame of mind.

[oldtrader]

When they fall through it is for the same reason other type of loans fall through.

REASONS

Credit report did not pass.

Your income less debt was below qualifying for loan (too much other debt often the cause).

Your income was less than claimed on application.

Job stability, chance you will be unable to pay loans.

[Hal Roach]

House will often need to be in "good" condition....many reo are not. I ran into this with 25% down. Originally, I stated 40% down, but the mortgage broker promised 25% would be ok...and likely better for him. The property was a HUD Home. The loan was Alt-A. Paid 47,500; sold 96,000.

Exceptional views.