REO's

Harry,

From my interpretation of your question you are confused about this process. First off, no bank will deal with you unless you show with your offer how you intend to pay for the property.
If you are buying and holding you need to either do one of four things:
1. PAY CASH (BEST PRICES FROM BANK)
2. Finance the deal through the bank (best place with lowest down is Fannie Mae - homepath.com covers it all)
3. Finance from a hard money lender
4. Finance from a local bank or Credit Union

If you are wholesaling then you use a transactional funder. But let me save you some time. I have had experience with the REO's lately and they are most likely NOT going to accept your offer with a POF letter from a transactional funder. They are changing the rules all the time and recently I found that both short sales & bank owned sales they tend to not want the LITTLE GUY to make any money now. Some banks now are starting an "unwritten rule" but stated in the agreement to buy that you must hold the property for 30 days. I have attempted to find in my state (IL) a hard money lender that will finance a loan for interest only for the 30 days but so far have been unsuccessful. I am dealing mostly with the big banks, and not Fannie Mae for wholesaling.
Good luck.

At the risk of sounding confused, what the heck are you talking about. If you are buying the prop to hold for a rental, it is just like buying your own pers prop. You buy the prop, go thru the song and dance of closing and bam it is your house to whatever you want to. If you are going to rent it out you should have already looked at rental comps in your area and started placing for rent ads.
I've gotta be missing something here....Jan