If a property was returned to the lender by a Deed In Lieu of Foreclosure, is it considered an REO?
Yes, it is considered an REO. REO stands for " **Real **Estate Owned" by a mortgage lender. Lenders become owners of properties when borrowers default on their mortgages. A "deed in lieu of foreclosure" occurs when a borrower agrees to deed the property to a lender to avoid foreclosure. So regardless of how the lender acquires the property, whether through foreclosure or by deed in lieu of foreclosure, the lender owns the property. REO is a mortgage industry acronym for the property that a lender owns that they have put on the market to sell in an effort to recoup the losses on their defaulted loans.