Thanks for your question about purchasing an REO. An REO is the last stage in the foreclosure process and these properties are typically listed on lender websites, Bank of America, Chase, & Fannie Mae websites all list their REO properties that are for sale (they have properties that are not for sale). These websites will show you the 'real prices'.
A good local agent can help you find an REO property and walk you throught the process. Please be advised that purchasing an REO is a longer more involved process than purchasing a property that is not distressed.