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Simple English definitions for legal terms
real estate owned
Read a random definition: trust res
A quick definition of real estate owned:
Real Estate Owned: When someone borrows money to buy a house or property, they have to pay it back. If they can't pay it back, the lender takes the property back. This property is called Real Estate Owned or REO for short.
A more thorough explanation:
Definition: Real estate owned (REO) refers to property that a lender has acquired, usually through foreclosure, as a way to satisfy a debt.
Example: Let's say a homeowner took out a mortgage to buy a house but was unable to make the payments. The lender may foreclose on the property and take ownership of it. The property then becomes real estate owned by the lender.
Explanation: The example illustrates how a property can become real estate owned by a lender. When a borrower defaults on a mortgage, the lender can foreclose on the property and take ownership of it. The property then becomes an asset of the lender, which they can sell to recoup their losses.
real-estate mortgage trust | Real Estate Settlement Procedures Act