What are the benefits of buying bank-owned properties or REO homes?

Buying bank-owned offers the following benefits:

• Bank-owned properties are usually sold at below-market prices.
   
• Buying bank-owned properties involves less risk and less competition.
   
• Foreclosures that are owned by banks are usually clear of any liens that may have been recorded against the property.
   
• Since the seller of REO homes is also the lender, you can negotiate with the bank to have them pay for all or some of the closing costs.
   
• Bank-owned properties are usually vacant because the banks have evicted the previous owner, saving the investor or homebuyer time, money and emotional toll involved in the eviction process.