Banks often have a special department dedicated to handling REOs. This department handles the sale of the property, making repairs, clearing title, marketing the property, etc.
REOs are frequently marketed on the multiple listing service and special instructions covering the sale are included in the description. When a potential buyer makes an offer, the selling process begins and the buyer or his/her agent is emailed or faxed pertaining documentation, including disclosures. Often, lender and buyer exchanges several counteroffers to arrive at the final purchase price. Once both parties agree on the price, terms, and conditions, both parties sign the contract.