Some REO distressed bank properties for sale are properties that a bank foreclosed on when the owners failed to make the contracted payments on their mortgages. Banks such as Wells Fargo and Bank of America list the bank-owned properties for sale on their websites.
Users can search both the Wells Fargo and Bank of America websites for foreclosed properties for sale by location. RealtyTrac also provides a listing of bank-owned property for sale. REO stands for "real estate owned," meaning the bank owns the property. Anyone can purchase REO property, and an advantage of buying REO property is that the bank clears all liens attached to the property before the sale takes place.