Real Estate Owned or REO

Real Estate Owned or REO is a term used in the USA to describe a class of property owned by a lender, typically a bank or government agency.  After an unsuccessful sale at a foreclosure or auction, the lender classifies the property as a non-performing asset and thereby placed in its inventory of houses as an REO.  Here is a more comprehensive explanation or FAQ, reprinted from the California Association of Realtors legal team: REO Transactions - CAR Member Legal Services