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An REO home is a property has been repossessed by a lending bank because the homeowner has defaulted on their mortgage loan. After being foreclosed and repossessed, and REO home is often sold at public auction by the bank in order to get back the amount lost on the loan. Incredibly, many of these homes are sold at auction for far below their actual market value. Purchasing an REO home can be a great way for homebuyers and investors to save money on their next real estate venture. The only trick is locating the available properties!

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