the interesting thing about REO properties is that they are made available at a discount to real estate investors due to being owned by the bank. so they are called real estate owned houses and will continue to flood the market due to the high number of foreclosures.
Some agents have been able to profit from foreclosures and short sales by representing the buyer and the seller in their local districts. BPO is when the value of the property is determined by other homes in the area, the condition of the home and how fast properties will sell once put on the market.
This is where the name Broker Price Opinion came from.