REO – Real Estate Owned.  These are properties that have been foreclosed by the bank and now the bank currently owns the property.  They are trying to recoup their costs of the foreclosure, however, the homes are typically listed below market value.

The good news about REO’s you don’t have to wait 4-6 months for an answer with the hopes that your offer is better than everyone elses.  Usually, the bank can give an answer on an offer within 48 hours.

Will the banks pay buyer’s closing costs?  It depends upon the banks.  Some banks are very open to that depending on their bottom line.  With the banks, remember its all about the numbers they don’t have any emotions attached to property.  In their mind the thought is, “Show me the money”