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Real estate owned or REO is a term used in the United States to describe a class of property owned by a lender—typically a bank, government agency, or government loan insurer—after an unsuccessful sale at a foreclosure auction.〔 William Roark (2006), ''Concise Encyclopedia of Real Estate Business Terms'' ISBN 0-7890-2341-5〕 A foreclosing beneficiary will typically set the opening bid at a foreclosure auction for at least the outstanding loan amount. If there are no bidders that are interested, then the beneficiary will legally repossess the property. This is commonly the case when the amount owed on the home is higher than the current market value of this foreclosure property, such as with a high loan-to-value mortgage following a real estate bubble. As soon as the beneficiary repossesses the property it is listed on their books as REO and categorized as an asset (non-performing asset). ==Origin== The term ''REO'' originates from the term ''other real estate owned'' (OREO), which is used on financial statements to classify real estate property owned by a financial institution but which is not directly related to its business. The important distinction underlying OREO is between lenders versus companies for which real estate management ''is'' their primary business. Lenders are primarily in the business of making loans with the intent that nearly all of those loans will be repaid in full with interest. Seizing, managing and reselling real property collateral to recover unpaid loan balances is secondary to lenders' primary line of business. In balance sheet terms, OREO assets are considered non-earning assets for purposes of regulatory accounting.〔 In the context of national banks in the U.S., the term OREO is legally defined by the Office of the Comptroller of the Currency in regulations promulgated pursuant to 12 U.S.C. § 29. 抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』 ■ウィキペディアで「real estate owned」の詳細全文を読む スポンサード リンク
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