When I see a house listed as an REO, what does that mean?
REO is simply an acronym used to describe a bank owned property. It stands for Real Estate Owned. Typically, REO properties are foreclosed homes that have been repossessed by the bank and did not sell at the Sheriff’s Sale. They are then put back on the open market for sale. The bank selling the house does not have to be the original mortgage holder. Increasingly, third party bank investors are buying foreclosed houses in bulk, making minor improvements, and then re-selling them under the title of an REO.