REO stands for Real Estate Owned.  An REO is a property that the lender acquired at auction because there were no bids higher than the default amount.

Most properties going into foreclosure have no equity or negative equity. Therefore there are no buyers at the auction willing to pay the default amount and the bank is forced to acquire the property.

The condition of these properties runs the gamut from dilapidated to delightful. I specialize in the delightful ones.

Clean late model homes with minimal cosmetic repairs are the way to go, especially if you need financing. The purchase of a handy man special or a home that needs extensive repairs should be left to the professional investor or cash buyer.

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