An REO, which means real-estate owned, is a foreclosure. It is being marketed and dispersed of usually by a company hired by the bank called a real-estate owned company. A bank-owned home is the exact same thing. It is a foreclosure, just a different term. A HUD home is a foreclosure as well. The only difference is it was formerly an FHA loan, so the government guaranteed that loan so the government is responsible for dispersing of that property
They’re all foreclosures. They’ve already been foreclosed on, and those entities are trying to disperse and get those properties off the books. A short sale is a home that is still owned by the homeowner, probably in imminent danger of foreclosure, trying to garner an offer that the bank will accept shorting the amount that the homeowner owes the bank because they are in a distressed or hardship situation and can’t make the payments
The price is negotiable and if they don’t have offers in the first few weeks, they will lower them every few weeks until it sells. They are trying to get rid of these properties and get them off the books. Buyers must be aware that the home comes as-is, and it's up to the buyer to pay for repairs and inspections. On the upside, most bank-owned homes are vacant, which can speed up the process of moving in. An experienced agent can be a very useful ally to help you purchase a foreclosure and avoid common pitfalls.