Bank-owned properties may offer rare bargains in this market and may even give ordinary homebuyers an edge over big-money investors. What Are Bank-Owned Properties?

What are bank-owned properties? A home becomes a bank-owned property after the homeowner defaults on their mortgage and the lender forecloses.

It’s far easier to buy bank-owned REO properties. You can still often find decent deals on REO homes, especially if you build relationships with REO managers at local and regional banks.

Getty Images Bank-owned properties often require significant repairs, and it's up to you to determine what needs to be done and how that should influence the price.