"REO" is Real Estate Owned. These are houses which have been foreclosed upon that the bank or mortgage company presently owns. This is different than real estate up for foreclosure auction. 
When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees amassed during the foreclosure process. You must also be willing to pay with cash in hand. Finally, you'll receive the property entirely as is. That could involve standing liens and even current residents that may require eviction.
A bank-owned property, conversely, is a much neater and attractive transaction. The REO property didn't find a buyer during foreclosure auction. The bank now owns it. The lender will see to the removal of tax liens, evict occupants if needed and generally organize for the issuance of a title insurance policy to the buyer at closing.
Take notice that REOs may be exempt from standard disclosure requirements. In California, for example, banks are exempt from giving a Transfer Disclosure Statement, a document that typically requires sellers to disclose any defects they are knowledgeable of. By hiring Realty World, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.
Is REO property in Miami a bargain?
It's sometimes believed that any foreclosure must be a good deal and a chance for easy money. This frequently isn't true. You have to be cautious about buying a repossession if your intent is profit from the sale. Even though the bank is typically anxious to offload it quickly, they are also looking to get as much as they can for it.
Look closely at the listing and sales prices of similar properties in the neighborhood when making an offer on an REO. And factor in any repairs or upgrades necessary to prepare the house for resale or moving in. It is possible to find REOs with money-making potential, and many people do very well flipping foreclosures. But there are also many REOs that are not good buys and may not be money makers.
All set to make an offer?
Most banks have staff dedicated to REO that you'll work with when buying REO property from them. To get their properties advertised on the local MLS, the lender will typically contract with a listing agent.
Before making your offer, you'll need to have your own Realtor who represents your interrest.The listing agents represents the bank. Find out as much as you can- about what they know about the condition of the property and what their process is for getting offers. Since banks almost always sell REO properties "as is", it may be in your best interest to include an inspection contingency in your offer that gives you time to check for unknown damage and terminate the offer if you find it. If, as a buyer, you can provide documentation showing your ability to secure financing, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This is generally true for any type of real estate offer.)
After you've presented your offer, it's customary for the bank to counter offer. From there it will be your decision whether to accept their counter, or make another counter offer. Your deal could be final in a single day, but that's rare. Since offers and counter offers usually allow a day or more for the other party to respond (and employees at a bank don't work nights or weekends) you could be looking at a week or longer.Me as agent with Realty World i'm accustomed to these situations and will work to ensure there are no unnecessary delays.
I will send you a list of REO's for a free , just e mail me !
