REO or Real Estate Owned occurs when houses are foreclosed when property owners become unable to pay principal or/and interest payments due on their home loan. This property is then made to undergo a foreclosure process, resulting in an auction.
Ample time is provided to owners for remedying the situation before the house goes into foreclosure. Some people prefer this, since distressed properties are often available at discounts, providing more value for money.
These customers are looking for foreclosed properties caused due to financial issues faced by the owner.
There are many ways to find these properties. You also need to be aware of several things before finding yourself a proper agent/agency to help you out.
It helps to be aware of the reasons behind foreclosure and the process to be followed for finding and purchasing such properties.