The bank now owns the property and the Loan no longer exists. The bank will handle the eviction, if necessary, and may do some repairs. They will negotiate with the IRS for removal of tax liens and pay off any homeowners association dues. 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 might not be a great bargain. Do your homework before making an offer. Make sure that the price you pay (if youre successful) is comparable to other homes in the neighborhood. Consider the costs of renovation, including time to complete them. Dont get caught up in a ‘bidding war and pay over market value. Its an old myth that foreclosures are a bargain.