Daily Real Estate News  |  September 14, 2007  |   Want a Bargain? Experts Tell Buyers to Shop REOs
Increasingly foreclosed properties are being sold by real estate professionals acting on behalf of banks.

For consumers, buying a property this way can be a deal. With what is known as a real estate owned property (REO), the buyer gets a home with no liens and a clear title. The original home owner has been evicted and the property is available free and clear, says Todd Beitler, co-author of "The Complete Idiot’s Guide to Foreclosures."

Buyers who choose the REO route can often save 5 percent to 15 percent off the market value because they buy directly from the lender.

It’s important for buyers to have financing lined up, says Sharon Collins, an associate at RE/MAX Realty Consultants in Winston-Salem, N.C. Otherwise, the deal may fizzle.

Source: BusinessWeek, Lauren Young (09/17/07)