What is REO (Real Estate Owned)?
REO stands for “Real Estate Owned” and refers to a property a lender or bank now owns because it did not sell at the foreclosure auction. The bank typically clears remaining liens, may make light repairs, and lists it for sale through an agent. REO homes are sold “as-is” more often than typical listings.
Example: A foreclosed house gets no acceptable bids at auction, so ownership reverts to the bank, which then lists it as an REO property on the open market.