Definition
Property that reverted to lender ownership after foreclosure, becoming the bank's problem instead of yours. These properties are the financial equivalent of returned merchandise.
Example Usage
The bank's REO department listed the foreclosed home at a discount, eager to get it off their books.
Origin
Banking term that became prominent during foreclosure waves of 1980s and 2008
Fun Fact
Banks hate owning REO properties because they're in the lending business, not the landlord business, which is why they often sell at steep discounts.
Source: Banking and foreclosure terminology
Related Terms
Translate This Term
See “real estate owned” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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