An REO (Real Estate Owned) is a property that has been bought at the auction (or taken back) by the bank that initially put it up for auction. Lenders have inventories of houses they don’t want. Most people think they have an asset when a lender forecloses on a property and gets the home back. When a lender takes back a property, it’s a liability to the bank.
REIPro is a great place to search for bank-owned properties. You may be able to work with the small banks where you live; the big banks are more difficult to work with. Contact your “Buyers Agent” for more details about each property and start scheduling appointments.