What is an REO Property?

An REO is another term used for "real estate owned" by a lender, bank, or savings and loan when the property is not sold at a public foreclosure auction. When the property is not sold in preforeclosure or a foreclosure auction, it is then rightfully owned by the lender. Since lenders are not interested in owning are managing real estate, they are very involved in selling property as quickly as possible to a homebuyer or real estate investor.

The REO stage is the last and final phase in the foreclosure process. If you are interested in buying an REO, you must submit a written contract to the lenders realtor or directly to the lender. It is also important to find out all the details and information on the property before you submit any offer and finalize your purchase.