Real estate owned or REO is a term used in the United States to describe a class of property owned by a lender—typically a bank, government agency, or government loan insurer—after an unsuccessful sale at a foreclosure auction.
DEFINITION of ‘Bank–Owned Property’ Properties that are taken into a bank’sinventory, after a foreclosure sale. Bank–owned property is aquired by a financial institution when a homeowner does not make their mortgage payments. These properties then sell at a discounted price, much lower than current home prices.
FOR MORE DETAILS AND HELPFUL WEBSITE, WWW.HOMEPATH.COM AND FNMA REO SITE.