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Reo residential property is the name that is providing to a piece of real estate that the financial institution took possession of due to foreclosure, they then tried to sell the property on the public auction format and the residential or commercial property did not sell. When this takes place the bank enters into recovery setting with the property. Their major goal is to recover cost with the real estate. The need to settle as well as recover cost is what makes a reo the excellent selection for the initial time flipper. The money that you minimize acquiring the residential property will provide you added money to do add-ons and repair services making the home worth a lot more.