Bank-Owned FAQ

REO stands for "Real Estate Owned" by the lender. Properties in this stage of foreclosure have been repossessed by the bank/lender, either through a foreclosure auction or a deed in lieu of foreclosure, in which the owner in default transfers ownership directly to the bank.

Buying a bank-owned property is probably the most straightforward way of buying a foreclosure. Unlike a pre-foreclosure, you’re not dealing with an owner who is emotionally attached to the property and is probably not happy about leaving. And unlike an auction property, you don’t have to produce a large amount of cash to buy a property you haven’t even viewed on the inside. Instead, you’re dealing with a bank/lender who is usually pretty motivated to sell the property quickly.

Many lenders have a department (often called the asset management department) responsible for the sale of properties owned by the bank. Sometimes you’ll be able to negotiate directly with this department and sometimes you’ll have to negotiate with a real estate broker they’ve assigned to sell the property. You can check if a bank-owned property is already listed for sale through a broker by clicking the "View MLS" button in the property snapshot section.

If available from public records, the bank’s phone number will be listed in the contact information tab of the property details page; however, keep in mind this phone number is not necessarily for the department that manages bank-owned properties. You may have to ask for the department authorized to make decisions for bank-owned properties.

If you’re not comfortable contacting and negotiating with the bank directly, you should have a real estate agent help you with that process. You can click on the agent banner on the right side of the property details page to find a local prescreened agent in your area.