What are "REOs" in real estate terminology?

"REOs," or Real Estate Owned properties, refer specifically to properties that are owned by lenders after a foreclosure process. When a property is foreclosed upon, it means that the original owner failed to make mortgage payments, and the lender has taken possession of the property. Once the lender owns the property, it becomes classified as an REO.

This terminology is essential in real estate as it indicates a property that is now in the hands of a bank or a financial institution, which will typically list the property for sale at a price that aims to recover the losses incurred from the foreclosure. The process of managing and selling REOs often involves different considerations compared to traditional real estate transactions, making it a crucial concept in the field.

The other options provided do not accurately define REOs in the context of real estate terminology. For instance, while real estate offers and options may relate to buyer activity, they do not pertain to lender-owned properties or the aftermath of foreclosure. Understanding the unique status of REOs is important for real estate professionals, as these properties often require specialized marketing strategies and considerations.