What’s the Difference between a Bank Owned Property and a Real Estate Owned (REO)?
There is no difference. They are just two different names for the same thing. REO means “real estate owned” and is the acronym for real estate properties that a bank has taken back into their possession for one reason or another, but usually they are foreclosed homes. REO’s can be easier to buy than short sales because the bank already has possession of the property. The bank does not need to evaluate the home owner’s circumstances or hardships and then negotiate offers to purchase. The bank already took the home from the homeowner, and it is now a stale asset with carrying costs that they need to liquidate as quickly as possible.
