Here’s a list of reasons why you’ll be better off purchasing real estate owned homes:

1. REOs Are Cheaper
Real estate owned houses are generally cheaper compared to buying houses in short sales. That’s because banks need to lower the purchase prices of REO homes to sell them immediately. Short sales, on the other hand, are pricier as banks and sellers aim to get the highest price as much as possible.

2. Clean Titles
Real estate owned properties have clean titles as lenders are required to erase all liens and claims against houses that were repossessed. Buyers of houses sold in short sales, however, are still likely to carry existing liens and claims against the properties that they bought.

3. REOs Are Vacant
Buyers can immediately move into real estate owned homes as they are usually vacant. Lenders are required to remove previous owners, sparing buyers from the emotional stress involved in evicting tenants. Buyers of homes sold in short sales, meanwhile, might have to wait weeks, even months, to give time for sellers to move out of their houses.

REO homes have other advantages over short sales but the three factors listed above are the main reasons why real estate owned properties are better than short sales.