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Mortgage Glossary

Real Estate Owned (REO)

Mike Starr·Reviewed August 2026

Real Estate Owned refers to properties that a lender — typically a bank or mortgage servicer — has taken back through the foreclosure process and now owns. REO properties are sold by the lender, often at a discount, and are typically sold "as-is." Buyers of REO properties may encounter lengthy negotiation timelines since they are dealing with a financial institution rather than an individual seller.