Dharma – Ditto what Rustico said. Any REO purchase will not happen without a complete liability release from the lender. No disclosures, no repairs, nothing… The lender wants to simply get rid of the home and because the lender has never lived in the house, it makes sense that there should be no liability incurred on the lenders part. The liability release documents are pretty daunting but you do have your contingency period to get all of your due diligence done. If you want to call a hygenist to hang spore traps then by all means you can do that. As a side note it would not surprise me if just as many resale homes that are NOT REO have the same results as REO for spore sample testing. That is another subject for another post.
The bottom line is that REO properties are a deal for a reason and this is one of them. As Rus said, due your homework, get your physical inspection done, get any other inspections that you or your inspector or your realtor recommends, and if it still is a go then pull the trigger, if not then consider it money well spent and move on.
