Whether you are new to real estate or have been around for a while, the new buzz word in the real estate industry is REO. REO is an acronym for Real Estate Owned. REO's are properties that are owned by the bank.

Several properties are being listed as REO and buyers are confused as to where they can get a better deal.

Many agents have listed pre-foreclosure homes with the prospect of helping the owners avoid foreclosure, only to have the lenders refuse to cooperate, despite many reasonable offers. This results in the foreclosure of the home, necessitating reserve bids from banks to buy back homes as collateral.

After foreclosure, the bank or mortgage company would want the property to be sold as soon as spossible to recover the expenses incurred.

The idea of foreclosed properties shouldn't scare you as these properties may range from poor to perfect condition. The property is foreclosed simply because of the inability of the owner to pay the mortgage.

I's really safe to buy a foreclosed property and be certain that you are buying a property with clean title as the lender can provide for it.

REOs are a great investment as long as you have a clear understanding of what exactly it is that you are getting into. Simply put, the bank wants to dispose off these homes, and if you manage to find the right property and are prepared to make a serious investment, it can prove to be a great way to take your successful plunge into the real estate investment business.

Buying bank REO's is a game and a competitive one at that. How you play the game and your success at the game is up to you. It is up to you to take action and do something with this information.