10 Reasons to Buy REO properties

1. REOs (bank owned properties) are a great bargain for people to buy as they are, in most cases, priced well below market price with a lot of inventory to choose from.
2. Bank owned properties have a clear title and are generally sold free and clear of all liens, title liens, mechanic's liens, second or third mortgages, HOA, delinquent back taxes and other claims.
3. Banks and lenders do not like holding REOs on their books, therefore they are highly motivated to sell the home and get it off their books as quickly as possible, avoid further expenses in maintaining these properties and stop losing money.  REOs are considered liabilities for a bank and the higher REO listing they have, the more of a loss it is considered on their part.
4. Banks are not in the business of owning homes or selling real estate.  They make loans, and when these loans aren’t paid on time, the bank takes over the property and sells it at a great discount. The result is that investors and bargain seekers can get the best deal with REOs.
5. You can inspect REOs before you decide to buy them, whereas you can not do that at a foreclosure auction.
6. You can make an offer on a REO property anytime and do not have to wait around for an auction date and for bidding to begin.  With REOs you are able to buy when you want.
7. Banks typically restore REOs to at least a readily salable condition whereas many foreclosures are often in terrible condition.
8. You can often get favorable lending terms in REOs below existing market rates with the bank or lending institution that owns the property.   You can also save money in your title search if you use the same title company that the lender used during foreclosure. They will often discount the cost up to as much as 100%.
9. Banks or lenders that own the property often provide an allowance for certain repairs on REOs and will often include appliances as well.
   
10. REOs are vacant in most cases because the bank already takes care of the eviction process thus investors can save a lot amount of time, money, and the emotional toll involved in the eviction process.