The bank now owns the property and the mortgage no longer exists. The property looks much like a developer having just completed building and now selling. i.e. The bank will set the new asking price. As a purchaser of an REO property, the buyer will receive a title insurance policy and the opportunity to investigate the property. A bank owned property(REO) might not be a great bargain. It depends, do your homework before making an offer. Make sure that the price you pay is comparable to other homes in the neighborhood. Consider the costs of renovation, including time to complete them. Don’t get caught up in a ‘bidding war’ and pay over market value. It’s an old myth that “foreclosures” are a bargain. Gail