Buying Foreclosure REOs: Bank-Owned Homes - http://homebuying.about.com/b/2007/12/19/buying-foreclosure-reos-bank-owned-homes.htm

Buying Foreclosure REOs: Bank-Owned Homes

By Elizabeth Weintraub, About.com GuideDecember 19, 2007

One of the very best ways to get a good deal in real estate is to concentrate on buying foreclosure REOs.

Forget about chasing down short sales and dealing with lenders who don't want to deal. Instead, I suggest going straight to the source, which is often the very same lenders who refused to deal but now must. These are lenders who have taken back a home in foreclosure.

Regardless of government-sponsored voluntary bail-out programs designed to help home owners in foreclosure -- the programs which are rightfully called "too little, too late and too voluntary" by The New York Times -- foreclosures will continue to rise throughout 2008. This means more banks will end up owning properties, which is bad news for sellers in default and bad news for the banks but could mean good news for first-time home buyers and investors.

The deals are out there. But don't make the mistake of thinking the bank is going to hand you a home on a silver platter. Banks hire lawyers to draw purchase contracts that favor the bank. And banks hire hard-nosed negotiators. Make sure you hire a real estate agent versed in dealing with REOs, an agent who will represent your interests over the bank's . . . read more about buying foreclosure REOs.