reo propertiesAs a former real estate analyst, I wanted to see how many REO properties were being offered by banks, and I found a website that has 63 banks listing REO properties, including the federal government. Apparently, the Department of Agriculture has some holdings in rural areas. I found one home in rural Arizona that is selling for $35,000, which is an incredible price for a home near Prescott, Arizona, where home were over $200,000 in 2007. 

It's no wonder investors are getting back into the market snapping up REO properties when values are that significant. People who have access to capital and have credit scores that would allow them to borrow money are making investments in these homes to sell once the market comes back. This is happening throughout many western states. Banks and other institutions want these properties off their books, and by marking the homes way down, families or investors can more easily afford these homes. It's too bad that the banks are not willing to loan to more people right now, because it would certain create a healthier economy if these properties were purchased by families who could benefit a great deal by buying low cost housing.