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Reo residential property is the name that is providing to a piece of real estate that the bank took ownership of as a result of repossession, they then attempted to sell the home on the general public auction style as well as the building did not sell. When this happens the financial institution enters into healing mode with the property. Their main objective is to recover cost with the real estate. The demand to work out and also recover cost is just what makes a reo the excellent option for the initial time flipper. The loan that you reduce getting the building will offer you money to do attachments as well as repair works making the residence worth much more.