real estate owned (REO) properties

Real estate owned (REO) properties are homes or commercial buildings that lenders, typically banks, have taken back after a borrower defaults on a mortgage. Once a property becomes REO, the lender aims to sell it to recover the unpaid loan amount. These properties are often sold at auction or through real estate agents, usually at a lower price than market value. REO properties are typically renovated or repaired before sale to make them market-ready. They represent distressed assets but can offer opportunities for buyers looking for properties at a potentially reduced cost.