Definition
A property owned by a lender after foreclosure because nobody bought it at auction—basically the bank's accidental property. These often sell at discounts but come with inspection nightmares.
Example Usage
The foreclosure property became REO after failing to sell at auction.
Origin
Banking industry terminology for properties banks acquire through default
Fun Fact
REO properties can be great deals but are often trashed by frustrated former owners during the foreclosure process
Source: Banking and mortgage lending standards
Related Terms
Translate This Term
See “REO (Real Estate Owned)” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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