{"id":185042,"date":"2025-10-03T11:57:39","date_gmt":"2025-10-03T17:57:39","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=185042"},"modified":"2025-10-03T11:58:06","modified_gmt":"2025-10-03T17:58:06","slug":"bank-owned-properties-are-up-41-percent-year-over-year-august-2025","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/bank-owned-properties-are-up-41-percent-year-over-year-august-2025","title":{"rendered":"Bank-Owned Properties Are Up 41% From Last Year\u2014What Does It Mean For Investors?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">When a property fails to sell at auction, it reverts to bank ownership\u2014becoming what\u2019s known as a real estate owned (REO) property. For investors, REOs often represent an opportunity to acquire distressed assets at potentially favorable terms.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">The latest August 2025 data from ATTOM Data Solutions reveals a sharp increase in REO activity nationwide, <\/span><span data-preserver-spaces=\"true\">signaling<\/span><span data-preserver-spaces=\"true\"> that more properties are <\/span><span data-preserver-spaces=\"true\">making their way<\/span><span data-preserver-spaces=\"true\"> through the foreclosure pipeline and <\/span><span data-preserver-spaces=\"true\">back into the hands of<\/span><span data-preserver-spaces=\"true\"> lenders.<\/span><span data-preserver-spaces=\"true\"> For investors, this surge could mean expanded access to discounted inventory, but also the need for careful <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/due-diligence-ultimate-guide\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">due diligence<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">The Numbers: August 2025 REO Activity<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Nationwide, 4,077 REO properties <\/span><span data-preserver-spaces=\"true\">were recorded<\/span><span data-preserver-spaces=\"true\"> in August 2025, <\/span><span data-preserver-spaces=\"true\">up<\/span><span data-preserver-spaces=\"true\"> 5.46% <\/span><span data-preserver-spaces=\"true\">month over month<\/span><span data-preserver-spaces=\"true\"> and a striking 41.12% <\/span><span data-preserver-spaces=\"true\">year over year<\/span><span data-preserver-spaces=\"true\">.<\/span> <span data-preserver-spaces=\"true\">This jump <\/span><span data-preserver-spaces=\"true\">underscores<\/span><span data-preserver-spaces=\"true\"> the <\/span><span data-preserver-spaces=\"true\">growing<\/span><span data-preserver-spaces=\"true\"> number of distressed homes banks are now <\/span><span data-preserver-spaces=\"true\">looking<\/span><span data-preserver-spaces=\"true\"> to offload.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Breaking down the numbers further:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Texas: <\/span><\/strong><span data-preserver-spaces=\"true\">476 REOs, a 186.75% YoY increase\u2014the single <\/span><span data-preserver-spaces=\"true\">largest<\/span><span data-preserver-spaces=\"true\"> state-level surge.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">North Carolina:<\/span><\/strong><span data-preserver-spaces=\"true\"> 151 REOs, up an astounding 112.68% YoY, showing a dramatic pipeline shift.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">California:<\/span><\/strong><span data-preserver-spaces=\"true\"> 343 REOs, a 49.78% YoY increase, reflecting growing pressure in a high-priced housing market.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Florida: <\/span><\/strong><span data-preserver-spaces=\"true\">276 REOs, up 36.63% YoY, reinforcing its position as one of the nation\u2019s leading foreclosure markets.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Ohio: <\/span><\/strong><span data-preserver-spaces=\"true\">142 REOs, a 10.08% YoY increase, steady but more modest compared to the sharp gains seen elsewhere.<\/span><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Why Investors Should Care<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">REOs are unique because they represent a stage where bank<\/span><span data-preserver-spaces=\"true\">s\u2014r<\/span><span data-preserver-spaces=\"true\">ather than homeowner<\/span><span data-preserver-spaces=\"true\">s\u2014c<\/span><span data-preserver-spaces=\"true\">ontrol the property.<\/span><span data-preserver-spaces=\"true\"> That dynamic often creates an environment where lenders are motivated to liquidate assets quickly, sometimes at discounted prices.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">For investors, this means:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">Negotiating with banks instead of distressed owners, reducing emotional variables.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Access to properties that may already <\/span><span data-preserver-spaces=\"true\">be listed<\/span><span data-preserver-spaces=\"true\"> through traditional brokerages or REO departments.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Opportunities to integrate acquisitions into tax-advantaged structures, such as self-directed IRAs, without the time constraints of auction bidding.<\/span><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Investor Opportunities With REOs<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">While every REO comes with risks\u2014such as potential repair needs or unresolved title issues\u2014they may also provide compelling opportunities:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Discounted purchases: <\/span><\/strong><span data-preserver-spaces=\"true\">Banks often prefer to offload REO properties quickly, creating the potential for below-market acquisitions.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Traditional due diligence:<\/span><\/strong><span data-preserver-spaces=\"true\"> Unlike foreclosure auctions, investors can typically conduct inspections, order appraisals, and perform <\/span><span data-preserver-spaces=\"true\">full<\/span><span data-preserver-spaces=\"true\"> title checks <\/span><span data-preserver-spaces=\"true\">prior to<\/span><span data-preserver-spaces=\"true\"> purchase.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Financing flexibility:<\/span><\/strong><span data-preserver-spaces=\"true\"> REOs may be easier to finance compared to auction properties, including the use of IRA Power Loans or <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/real-estate-investment-non-recourse-loans\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">non-recourse loans<\/span><\/a><span data-preserver-spaces=\"true\"> when investing through retirement accounts.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Less competition:<\/span><\/strong><span data-preserver-spaces=\"true\"> Compared to pre-foreclosure or auction stages, REOs may face fewer bidders, particularly in niche or secondary markets.<\/span><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">State Spotlight: Where REOs Are Rising<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Examining state-level data <\/span><span data-preserver-spaces=\"true\">highlights why REOs are increasingly <\/span><span data-preserver-spaces=\"true\">important<\/span><span data-preserver-spaces=\"true\"> for investors.<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Texas: <\/span><\/strong><span data-preserver-spaces=\"true\">With nearly 500 bank-owned properties in August and a staggering 186% annual increase, Texas may be ground zero for REO opportunities. Investors focusing on rental growth markets such as Dallas, Houston, and San Antonio could find an expanded pool of inventory.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">North Carolina:<\/span><\/strong><span data-preserver-spaces=\"true\"> The 112% year-over-year increase suggests that even fast-growing markets like Raleigh and Charlotte are not immune to distress. Investors here may find discounted properties in both suburban and urban areas.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">California:<\/span><\/strong><span data-preserver-spaces=\"true\"> With 343 REOs<\/span> <span data-preserver-spaces=\"true\">recorded in August, California\u2019s surge indicates that elevated home prices and affordability challenges are contributing to foreclosure completions. Savvy investors may target ZIP codes with concentrated REO activity for acquisition opportunities.<\/span><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">What It Means for Real Estate Investors<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">The increase in REOs means that more distressed properties are <\/span><span data-preserver-spaces=\"true\">making it through<\/span><span data-preserver-spaces=\"true\"> the entire foreclosure cycle. For investors, this can translate into greater availability of discounted assets\u2014properties that can potentially <\/span><span data-preserver-spaces=\"true\">be rehabbed<\/span><span data-preserver-spaces=\"true\">, rented, or held for long-term <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/what-is-appreciation-in-real-estate\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">appreciation<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">However, with opportunity comes the need for diligence:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">Many REOs require significant repairs, making accurate rehab budgeting critical.<\/span><\/li>\n\n\n\n<li><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/what-is-a-house-title\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Title<\/span><\/a><span data-preserver-spaces=\"true\"> issues may still exist and should be resolved <\/span><span data-preserver-spaces=\"true\">prior to<\/span><span data-preserver-spaces=\"true\"> acquisition.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">While banks may be motivated sellers, competition among investors remains a factor in desirable markets.<\/span><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">For those investing through a self-directed IRA, REOs also offer the potential to acquire properties in a tax-advantaged environment\u2014whether for rental income, long-term appreciation, or future resale.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">The Strategic Advantage of Data<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">This surge in REOs reinforces the importance of tracking foreclosure data across all three stages:<\/span> <span data-preserver-spaces=\"true\">Starts, Notices of Sale, and REOs. By monitoring where bank-owned properties are <\/span><span data-preserver-spaces=\"true\">being built<\/span><span data-preserver-spaces=\"true\">, investors can:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">Identify ZIP codes with clusters of REOs<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Compare local REO growth rates against state and national averages<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Anticipate where banks may be most motivated to liquidate inventory<\/span><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Imagine spotting a county in Texas where REOs have doubled quarter over quarter. That insight may give investors an advantage when approaching bank REO departments or monitoring MLS listings tied to distressed inventory.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Take Control of Your Investment Strategy<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">The August 2025 surge in REOs highlights an important truth: Successful investors don\u2019t just react to market headlines\u2014they track data consistently and position themselves early.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">With Equity\u2019s Foreclosure Reports, powered by ATTOM Data Solutions, you\u2019ll get monthly updates on Foreclosure Starts, Notices of Sale, and REO properties\u2014sortable down to the ZIP code level\u2014so you can identify opportunities before the rest of the market catches on.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><span data-preserver-spaces=\"true\">Subscribe today for just $19.95\/year for a single state, or $69.95\/year for the entire country.<\/span><\/strong><span data-preserver-spaces=\"true\"> Visit our <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.trustetc.com\/real-estate-solutions\/real-estate-reports\/?utm_source=bigger_pockets&amp;utm_medium=blog&amp;utm_campaign=awareness_education&amp;utm_term=aug_reo_blog&amp;utm_content=foreclosure_reports_cta\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Real Estate Reports Page<\/span><\/a><span data-preserver-spaces=\"true\"> and click to view the Foreclosure Reports to start tracking foreclosure data now.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em><span data-preserver-spaces=\"true\">Equity Trust Company is a directed custodian and does not provide tax, legal, or investment advice. Any information communicated by Equity Trust is for educational purposes <\/span><span data-preserver-spaces=\"true\">only,<\/span><span data-preserver-spaces=\"true\"> and should not <\/span><span data-preserver-spaces=\"true\">be construed<\/span><span data-preserver-spaces=\"true\"> as tax, legal, or investment advice. Whenever making an investment decision, please consult with your tax attorney or financial professional.<\/span><\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em><span data-preserver-spaces=\"true\">BiggerPockets\/PassivePockets <\/span><span data-preserver-spaces=\"true\">is not affiliated<\/span><span data-preserver-spaces=\"true\"> in any way with Equity Trust Company or any of Equity\u2019s family of companies. Opinions or ideas expressed by BiggerPockets\/PassivePockets are not necessarily those of Equity Trust Company, nor do they reflect their views or endorsement. The information provided by Equity Trust Company is for educational purposes only. Equity Trust Company, and <\/span><span data-preserver-spaces=\"true\">their<\/span><span data-preserver-spaces=\"true\"> affiliates, representatives, and officers do not provide legal or tax advice. Investing involves risk, including possible loss of principal. Please consult your tax and legal advisors before making investment decisions. Equity Trust and Bigger Pockets\/Passive Pockets may receive referral fees for any services performed as a result of being referred opportunities.<\/span><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>When a property fails to sell at auction, it reverts to bank ownership\u2014becoming what\u2019s known as a real estate owned (REO) property. For investors, REOs often represent an opportunity to [&hellip;]<\/p>\n","protected":false},"author":613768,"featured_media":185039,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8],"tags":[],"class_list":["post-185042","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-trends"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/185042","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613768"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=185042"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/185042\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/185039"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=185042"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=185042"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=185042"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}