NO. The sale of REO is not the same as a property up for a foreclosure auction. When buying a property during a foreclosure sale, you need to be ready with cash in hand to pay the loan balance plus any interest and other fees accumulated during the foreclosure process. In exchange, you will receive the property “as is” which might include existing liens and even current occupants that need to be evicted.
By contrast, a REO is a much “cleaner” and attractive transaction. The REO is owned by the bank because the bank did not find a buyer during the foreclosure auction. The bank will see to the removal of tax liens, evict occupants (if needed) and generally prepare for the issuance of a title insurance policy to the buyer at closing.