CrossroadsREO

Definitions


Q: What is a "bank-owned property"?
A: When a borrower with a mortgage from a bank or mortgage lender can't meet the payments, the lender forecloses on the property and takes ownership of the property. Then the lender lists it with a listing (real estate) agent and sells it at market value as quickly as possible. To learn more, check out our REO FAQ's.

Q: What is Real Estate Owned (REO)?
A: Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most foreclosure auctions equal the outstanding loan amount, the accrued interest and any fees associated with the foreclosure sale. To learn more, check out our REO FAQ's.

Q: What is foreclosure?
Foreclosure: A legal procedure by which mortgaged property is sold, upon default, in order to satisfy a debt. Foreclosures generally are governed by state law, and rules may vary between States.

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