Process
Real Estate Owned (REO)
Property that has been acquired by a lender through foreclosure after the borrower defaulted on the mortgage. REO properties are typically sold at a discount because lenders are motivated to get them off their books. Buying an REO can be a way to find a deal, but these properties are sold as-is and may need significant repairs. Bank-owned listings are found through real estate agents and lender websites.
Why It Matters
Real Estate Owned (REO) is one of the steps you will encounter on the path from house hunting to holding the keys. Knowing what to expect at each stage reduces stress and helps you make better decisions under time pressure.
Stay organized and communicate proactively with your real estate agent, lender, and other professionals involved in real estate owned (reo). Delays and misunderstandings at any step can push back your closing date or cost you money.