Real Estate Owned (REO)

Real Estate Owned (REO) refers to properties that are owned by a lender, typically a bank, after an unsuccessful foreclosure auction. When a homeowner defaults on their mortgage, the bank repossesses the property. If it doesn’t sell at auction, it becomes REO. These properties are then listed for sale by the bank, often at a lower price than market value to encourage buyers. REO properties can be opportunities for homebuyers or investors, but they may also require repairs and due diligence.