Why should I buy a buy bank-owned REO?

One of the advantages of buying a bank-owned property is that you can purchasing a property without liens or other encumbrances. Before lenders make REO properties available for sale, they typically expunge all liens or claims against the property. Any cloud on the title — a second or third mortgage, mechanics liens, taxes or any other liens attached by creditors — are wiped out. Most Bankowned properties are priced below market value. If you finance through the lender, you may also get favorable lending terms below existing market rates.