What is an REO?

Question

What is an REO? I am learning the real estate terminology. Thanks for the help!

Justin S. · Answer

Yes, but you most likely need to submit a lot of offers to get the price you need.  Concentrate on properties that have been on the market for a long time.  A lot of offers is in the 30-100 range.  Not 5-10 range.

Do you have money to buy REO's?  You will generally need 20-25% plus repair and holding costs.  If you do not have a lot of capital, you may want to concentrate on shortsales or Subject To deals.

Travis Soileau · Answer

Is it possible to make good money with REO's?

Jake Kucheck · Answer

What you probably weren't asking but might like to know anyway:

REO stands for Real Estate Owned.  Why call it this when it seems more intuitive to call it a "Bank Owned Property"?  Simple.  On bank balance sheets, foreclosed properties are listed as Real Estate Owned or "REO".

Just thought I'd pass it along because I had this same question in a meeting of 100+ RE Agents way back when... just wanted to save you the trouble.

Mike Macey · Answer

What is a REO?

A REO is the result of the Foreclosure process.  The bank becomes the owner of  the Real Estate Owned.

A Foreclosure occurs when a property owner cannot make principal and/or interest payments on a loan.

1. Notice of Default (NOD)
   2. Notice of Sale
   3. Trustee Sale
   4. Opening Bid

When this occurs, and the opening bid is not met, the property is deemed an REO  :idea:

James Hiddle · Answer

It stands for Real Estate Owned basically when the bank takes possession of a property they foreclosed on.

Franklin Lee · Answer

A bank-owned home.