 |
Definition of 'Real Estate Owned - REO'
Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most foreclosure auctions equal the outstanding loan amount, the accrued interest and any fees associated with the foreclosure sale.
|
 |
Investopedia explains 'Real Estate Owned - REO'
If the property is real estate owned, the bank will then go through the process of trying to sell the property on its own. It will try to remove some of the liens and other expenses on the home, and then try to sell it on the market. Real estate investors will often go after these properties as banks are not in the business of owning homes and, in some cases, the house can be bought at a discount to its market value.
|
-
Answering this means number-crunching as well as factoring in other considerations and expenses.
Read More »
-
Find out if the house you're eyeing is really a good deal.
Read More »
-
We explain the calculation and payment process as well as the amortization schedule of home loans.
Read More »
-
-
Search and compare the best fixed and adjustable mortgage rates in your area with Bankrate.com.
Read More »
-
REITs are much like dividend-paying companies, but analyzing them requires consideration of the accounting treatment of property.
Read More »
|
|
