Meaning of Bank Offered "Special Financing"?

When a bank says: they are willing to offer special financing on a home they have foreclosed on, what does that typically mean they are willing or are going to offer?

typically, that means that they'll do something like waive the appraisal or offer an interest rate below that to what they are currently offering their retail customers..... not all of them do the same....... but those are two examples of what the company I used to work for did on their REO inventory.

Often this is a small benefit . . . such as a free appraisal, or expedited processing . . . a "benefit" that might not make up for a higher rate or less-than perfect service during the process.

I generally advise folks that are looking at bank owneds to explore the bank's offer, and to price out a "regular" loan with at least one independent lender. Unfortunately, if you only call the bank, they know you are a captive audience. The "benefit" may not outweigh any negatives.

I dont want to put down bank special financing. In some cases, it is a fantastic deal . . . such as fannie mae owned homes financed with minimal down payment under the HomePath program

( www.homepath.com )

But it is also often a vague promise to get you to come see and buy the house . . . move with caution, and ask questions. No one "special loan" is going to be perfect for all buyers.