Bank Owned Properties
What is a bank owned property or REO?
The definition of REO is “Real Estate Owned” or “Bank Owned Property”. It is a property that the owner has stopped making mortgage payments to the lender. After so many missed payments the Lender will take over the property (foreclosure) and try to auction the property. If the auction fails to obtain a Buyer the Lender will most likely put the property on the local real estate market.
During this time the Lender is responsible to maintain the property. Usually the property will be sold in an “As-Is” condition with no repairs. This damages the property owners credit rating resulting in several years before the owner can purchase another home with a lender.