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Reo residential property is the name that is offering to an item of real estate that the financial institution took possession of as a result of foreclosure, they then attempted to sell the property on the public auction style and the residential property did not offer. When this happens the bank goes into recuperation mode with the residential property. Their primary objective is to recover cost with the real estate. The need to work out and damage even is exactly what makes a reo the excellent option for the initial time flipper. The cash that you minimize acquiring the building will certainly offer you money to do attachments as well as repairs making the home well worth a lot more.