The home that you have bought has been repossessed. The seller had Repossession and lowered credit rating too. According to some financial advisors or consultants, such a home may pose problems for the buyer. The seller is at a benefit.

The seller could make use of quick property sale too. So it’s recommended from a seller point of view, but the repo is not feasible from the buyer point of view. The only heavy burden of costs that has to be borne by the buyer is of recovery and home maintenance costs. So, different advisors recommend that a home survey should be made before the agreement is written. There is a risk involved in buying every kind of homes, but a double risk is associated with a repo home. 

The seller may have exercised a Sell and rent back option too. This would have benefited him more. The double risk associated with a repo home may reduce the popularity, but these are some of the financial solutions available to both buyers and sellers. Logically speaking, it can never be said that how much can be gained or lost from buying a repo home. But still people are buying and selling repo homes. That implies that the option doesn’t give a 100 % loss to the buyer. It depends on the condition of the house. He needs to see how much maintenance is to be made. Equity release may help.