Is a $10 REO worth it?

[Joshua Morris]

I live in a town where there is a predicted oil boom, already the housing prices have gone up at least 20k over the past 2 years. I am looking to find cheaper bank owned real estate to at least get my feet in. I found a couple of REO's that are transfer priced at $10 could anyone shed some light/insight on the REO purchases process and if these would be worth scooping up for the time.

Thanks in Advance

Josh M.

[Wayne Brooks]

"Transfer price" for $10 doesn't mean you can buy it for $10, it means nothing.  It means....at the auction, the bank announced some minimum bid necessary for them to let it go, say $80k.  No one bid this, so the bank got it back for an opening bid of $10.  It used to be entertaining to watch people come to the foreclosure auctions, when they were live, thinking they could buy a house for $200, since they saw all these $100 prices the bank took the properties back for.