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REO is short for real estate owned and REO properties are properties repossessed by banks or other mortgage lenders simply because the owner has defaulted on the mortgage. The lender is now the owner and obviously would like to put up for sale the properties as fast as possible which is why they usually are offered at bargain prices. Before getting carried away by the price which might hit you as a deal of a life time, you should know about several of the risks involved so as to make the most of your investment.

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