Housing Wire

AUGUST 5, 2025

Depending on where they are in the process, they might still be living in the home (also called pre-foreclosure), actively listed for auction or already repossessed by the bank (referred to as real estate owned or REO). Each stage represents a different kind of opportunity, and knowing how to approach each one is key.

Banks

Redfin

MARCH 4, 2025

That means there’s no home inspection or appraisal. If possible, consult a real estate attorney to be sure you understand the realities of the auction and the transaction rules. Bank-owned properties Bank-owned properties, often called real estate-owned (REO) properties, are owned by the lender.

Pre-approval

AAOA

MAY 5, 2025

Preforeclosures: Preforeclosures refer to properties in the early stages of foreclosure. In these early stages, the homeowner struggles to keep up with mortgage payments but still owns the property. Websites like theMultiple Listing Service (MLS)often list foreclosures, bank-owned properties, and short sales.

Bankruptcy

HomeLight

SEPTEMBER 30, 2021

REO owned: If the home doesn’t sell at auction, it becomes real-estate owned, meaning the bank or lender owns it. Finally, a third way to buy a foreclosure is through a real-estate owned, or REO, listing. Make sure to get a good inspection, and know what you’re getting yourself into!

Banks

HomeLight

SEPTEMBER 1, 2020

But then, it went into foreclosure and didn’t sell at auction, so now it’s listed as an REO, or real estate-owned property. A “real estate owned,” or REO, home is one that’s owned by a bank. Buying a bank-owned home isn’t the same as buying a house from a private homeowner. What’s an REO home?

Banks

Realty Biz

JUNE 20, 2023

Types of Foreclosures There are three main types of foreclosures: pre-foreclosures, auctions, and real estate-owned (REO) properties. Auctions: Properties not sold in the pre-foreclosure stage go to auction. REOs: If a property does not sell at auction, it becomes a real estate-owned property, owned by the bank or lender.

Due diligence

HomeLight

AUGUST 31, 2020

You will learn what each stage of the process looks like as we define the different terms clearly. One thing to keep in mind, though, is that the seller probably isn’t going to have cash reserves available to fix any issues uncovered in the inspection before closing. You aren’t able to inspect the property beforehand, either.

Short sale