Buyers who want to purchase a bank-owned property, also known as real estate owned, or REO in real estate lingo, sometimes run into glitches in the chain of title or ownership, says Moody. This gap occurs when a home is put on the market and readied to be sold before all the last details of the foreclosure have been finalized.
"There is a gap in the title chain," Moody says. "It causes delays, and a lot of buyers get frustrated and drop out."
The solution, again, is patience -- and a lot of it. Moody recalls one sale that stretched out for four months before the problem was resolved, and the transaction closed.
"It was a cash deal," he says, "and I was surprised they hung in there, but they did."