REO listings refer to "real estate owned" properties, or foreclosures owned by banks, according to Bank of America. Purchasing an REO listing is different from a traditional mortgage, and potential buyers go through a pre-qualifying process for loans. Bank of America suggests customers use a real estate agent familiar with real estate owned properties.
Large mortgage companies such as Bank of America, Wells Fargo, Fannie Mae and Chase list their REO properties for sale on their websites. Customers search these properties by address, price, number of bedrooms and number of bathrooms. Property listings and searches appear similar to privately held homes and properties found on real estate websites. These websites allow users to create online profiles to receive email and text alerts when more properties come available.
Wells Fargo reveals that its foreclosure properties are sold at fair market value. The company works with local real estate agents, assesses a property's condition, makes repairs and then sets an accurate price for a particular property. Some foreclosures have special purchasing times for owners who wish to live in the homes before investment companies have a chance to make an offer. When buyers receive bank financing, the financial institution may require an inspection. Bank of America explains REO listings make searching foreclosed properties easier for potential customers.