REO properties, commonly referred to as bank foreclosures, are homes that are bank-owned. After borrowers default on their home mortgage loans, lenders must buy back the properties at auctions to recover their losses.
REOs are basically foreclosed homes. You would buy the house for $11,436 if that is what you offered. There are always other fees when buying a home. The amount of these fees depend on where you are located and the terms in the contract. There is title work, abstract fees, etc. I will give an example of a home we purchased about a month ago. We purchased it for $7,000 in Iowa. We paid the escrow company $150. We paid $70 for a title search and $90 for the title examination. We paid $12 for the deed recording fees.
We paid a total of $322 in fees for the home (buyers).
The sellers paid $150 to the escrow company (the other half of the fee). The paid $499 for the abstract search, and $10.40 toward the deed. They weren't in Iowa, so it cost them $40 more for courier fees.
The sellers paid about $699 in fees.
I can't imagine that you would pay over $12,000 altogether for your home, but ours was in Iowa, not California. I don't know the differences from Iowa to California.
If you are making a cash purchase, you won't have any lender fees. If you are being lent money, you will also have the closing costs through the bank.
I hope this is helpful.