Buying a home directly from a bank—typically referred to as a property—involves acquiring a home that failed to sell at a foreclosure auction and is now back on the lender's books . While you often deal with the bank's asset management department rather than an individual owner, most large lenders still require the use of a real estate agent to facilitate the transaction . Core Steps to Purchase an REO Property The REO Guide: 10 Steps to Buying a Bank-Owned Home