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[aguilar]

REO = Real Estate Owned

REO is commonly referred to as bank owned property or any of the current "Real Estate Owned" property that a bank may have for sale.

Please feel free to ask questions about REO Real Estate here in our real estate forum. We have a specific section completely focused on REO real estate business.

Thank you!

[LeighAlpha]

REO? Short Sale? Foreclosure?
Short Sale - when the homeowner is in default but foreclosure proceeding have not begun, the owner may try to satisfy the credit obligation by selling the property at an amount lower than the mortgage balance owing. These sales are subject to lender approval, and the main reason a lender may approve a short sale is the cost to go through the foreclosure process may be more than the amount lost through a short sale.
Foreclosure - the lender has started the legal process to claim the property due to the mortgage being in default or other terms of the agreement breached.
REO/Bank Owned Property - the foreclosure process is complete and the property is owned by the lender.....

[BraidyPaul]

It means Real Estate Owned. In the application process, it refers to any deeded property the applicant ownes along with its corresponding information - address, type of property, use of property, value, balance owed, monthly payment, and taxes and insurance...............
In the servicing side of real estate, mortgage companys use the term REO for properties they have foreclosed upon, and now have converted into their name. Real estate they own.....

[Martha]

what is the difference between a comparable sale and a competitive property?

[aguilar]

Comparable sale is a similar model match sale that would support or justify the value of your subject property.

Competitive property, I think you may have been referring to comparable listings which is the same as a comparable sale except that it has not sold yet. When we prepare a BPO (Broker Price Opinion) for the bank they ask us to provide 3-4 comparable listings, (active) and 3-4 comparable sales for the subject. The purpose is to see what has recently sold and what is currently available which will help the bank understand the current market in that area. The key is knowing and identifying a declining market which will require you to price your home very aggressively to ensure it sells. If your in a declining market and your property is priced above current comps it will never sell.

Most banks or reo companies are never in the city they are selling the property and they require local agents to be their eyes in the field and tell them what the current market trends are.