Real Estate Owned [REO]
An REO or Real Estate Owned property is a home that is owned by the lender, usually a bank or government agency, and is currently on the market as a result of a failed auction sale. This usually happens when the loan amount on the house is greater than the current value of the home. These homes are sometimes priced below market value in an attempt to create a bidding war. REO properties are still good deals, but they usually are in disrepair and may need a lot of work.