There are so many points and facts to know about making and writing REO or post-foreclosure offers, this list is only a basic overview and there can certainly be much more added.  However, the points covered here are the ones that create the most obstacles for buyers and agents of REO properties. 

1. Don’t make verbal offers as they are almost never accepted and barely considered.
2. The seller of REO is usually a financial institution or government agency and we all well know that they don’t operate on weekends or holidays, so don’t expect a response after 5pm or on a weekend.
3. The seller, being the financial institution or government agency, is looking for the best offer.  This does not mean the highest offer.  There are other risks and sales contingencies weighed during the decision process.
4. It can take a week or more to get an answer, so practice patience.  Due to the approval from many levels within the seller’s infrastructure, it can take time.  Your agent can’t do anything to rush the situation, so just be patient.
5. If your offer is accepted, it can still take 7-10 business days to receive a fully signed and executed contract. 
6. Don’t always expect a counter offer.  More often than not, a seller will respond with a reject offer and no counter.
7. REO agents have to invest a lot of time with clients and may be hard to reach.  It is best to communicate your needs via email or fax to avoid frustration with communication efforts.  If you are contacting any agent by phone, leave only one message.
8. Since financial institutions are the sellers of REO properties, they will not have any property disclosure information available for buyers.  All REO properties are sold “As Is”.  Buyers should utilize inspections to learn of the property condition before making an offer.
9. On those same lines, financial institutions and REO sellers are not inclined to make any additional repairs to the property.  In addition, if buyers are not able to make repairs to a property prior to closing-this can affect financing and should also be considered before making an offer.
10. Cash offers must be accompanied by proof of funds.  This can usually be accomplished with a letter from the buyers bank verifying the funds are available.  Offers subject to financing will need a pre-approval letter to accompany any offer.