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Jul
15

It’s not Real estate owned, it’s bank owned, isn’t it?

Posted by admin

How can a real estate own itself?
Who/how came up with this term; "real estate owned"?
It’s insane! Isn’t it?
Or am I wrong? Please explain.

REO or real estate owned means Real estate owned by the bank. This occurs after a foreclosure. Let’s say you owned the house the sheriff sale happened, now the house is a REO. The bank now owns it.

A lot of people I talk to think the bank owns their house until the mortgage is paid off. The bank is the first lien or mortgage holder, but the mortgagor (you) own the house.

  1. probablygraham Said,

    I agree. A very strange and stupid term to describe it.
    References :

  2. Caveat Emptor Said,

    It’s real estate industry jargon. Deal with it.
    References :

  3. Credit Expert Said,

    REO or real estate owned means Real estate owned by the bank. This occurs after a foreclosure. Let’s say you owned the house the sheriff sale happened, now the house is a REO. The bank now owns it.

    A lot of people I talk to think the bank owns their house until the mortgage is paid off. The bank is the first lien or mortgage holder, but the mortgagor (you) own the house.
    References :

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