Bank-owned homes, also called REO (real estate owned) properties, can be some of the best values on the market. But buying one is not like buying from a regular homeowner. The seller is a bank or asset manager working through a set process, and buyers who understand that process write …

Short sales, pre-foreclosures and bank-owned (REO) homes all involve a homeowner who could not keep up with a mortgage, so people often lump them together. But they are very different for buyers, and for homeowners in trouble the difference between them can …