What’s a Bank Owned Property?

A bank owned property is a property owned by a lending institution, typically a bank, government agency, or government loan insurer, after an unsuccessful sale at a foreclosure auction. It is a property that has been obtained by means of foreclosure, also known as repossession, and is also known as a repossessed home, REO property or foreclosed home. A property is repossessed because the mortgage payer has ceased to pay the mortgage payments on the property.