What are REO Properties?

REO properties are properties owned by the bank due to foreclosure. REO (real estate owned) properties can be single-family houses, multi-family units, commercial buildings, and land.

It is common for REO properties to have creditor and tax liens attached to them, which are often cleared by the bank before auction. A common misconception about REO properties is that they are sold for pennies on the dollar. This is typically not the case because many of these properties require repairs. Often though, the bank will sell distressed properties "as is" which can provide considerable cost savings.

Related Information: REO Properties: What Does Real Estate Owned Mean?