Properties and Apartments

Archive for December 9th, 2008

Bank owned real estate or real estate owned (REO) is a property that goes back to the mortgage company, typically a bank, after an unsuccessful foreclosure auction. A bank typically sets the opening bid at a foreclosure auction for at least the outstanding loan amount. In the event that there are no interested bidders, then the bank will legally repossess the property. Upon repossession, it is listed on their books as REO and is categorized as a non-performing asset.