The term REO means “real estate owned” by the lender and indicates the house or income producing property has been repossessed by the lender and already completed the legal foreclosure process. In most cases, the lender is the bank, which is why you hear the term “bank owned properties” or “Bank REO’s”.

The bank becomes the owner of the property after the foreclosure process or an individual if an agreement has reached during the proceedings..

One way to avoid foreclosure is thru Short Sale wherein the property is offered to a bank or a lender who is willing to buy the property at the agreed amount.

For a property to be sold quickly, it is priced lower than the current market value by the bank or a lender.

Foreclosed properties are bought on “As Is” condition and the new owner shoulder all the responsibilities that goes with the property.

Most often, a property is sold at a foreclosure auction at a much lower rate. After foreclosures, the bank repossess the property.

In order to be successful in real estate business, you need to have a pool of good contacts. No matter how good you are, you would need help from people to keep you in this business

This rule applies to every property being sold.