Definition
REO (Real Estate Owned)
Also called: bank-owned property
REO is a property a lender owns after it failed to sell at foreclosure auction. 'Bank-owned' listings are REO inventory being resold, usually as-is through local agents.
A property becomes REO when the foreclosure auction produces no bidder at the lender's minimum, leaving the bank holding the asset. Banks are reluctant landlords: they clear title issues, sometimes do minimal repairs, and list to recover the loan balance.
For a homeowner in foreclosure, REO is the end state to avoid — it means the auction happened. Every pre-auction option, including a fast sale, produces a better financial outcome than letting the property go through the auction to the bank.
Definitions first. Offers when you're ready.
Tell us about the property once and vetted cash buyers respond with competing written offers — free, no obligation.
Questions first? Read the FAQ →