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.
Answer Submitted on Wed, Feb 11 2009
Rate this Answer: