reo propertiesREO properties are homes that are owned by lenders, and can be purchased from the banks for far less than they were last sold. There are many REO properties on the market right now, and savvy home buyers are taking advantage of this market and buying them for far less than the original owners. After the big run up in real estate in the mid 2000's, home prices started sinking because people could not afford their escalating payments, and had to walk away from them. REO properties are the same as foreclosures, and just about everyone has heard of how many foreclosures that there are on the market.

REO properties are a little more complicated to buy, but if you have patience and persistence, you should be able to buy one as either a primary home or an investment home. If you are financially secure right now, start searching online for REO properties in the neighborhoods in which you want to live or invest, and see if you can't get some really great bargains while the housing market sorts itself out.