: Allows you to wrap the purchase price and repair costs into a single mortgage—ideal for "fixer-uppers".

such as Fannie Mae HomePath or Freddie Mac HomeSteps .

While cash is king in distressed sales, several loan types are available for REO properties.

Hidden liens can occasionally persist if not thoroughly searched. Opportunity to build "sweat equity" through repairs.

“Buying from a bank is not like a normal sale. They don’t care if you love the kitchen; they only care about the bottom line and proof of funds.” Bank of America

Competition from cash-flush investors can spark bidding wars. Generally sold with a clear title and no outstanding taxes.