In real estate terminology, what does "REO" stand for?

In real estate terminology, "REO" stands for Real Estate Owned. This term specifically refers to properties that are owned by a lender, typically a bank, following a foreclosure. When a borrower defaults on a mortgage and the lender takes possession of the property, it becomes part of the lender's inventory of properties. These properties are often sold at a price lower than their outstanding mortgage balance, as lenders aim to recover some of their lost investment.

Understanding the term REO is crucial for real estate professionals, as it often involves unique buying opportunities and considerations, including the nature of the property, the condition of the property, and the associated legal paperwork.

The other options, while they may sound plausible at first glance, do not accurately represent the established meaning of REO in the context of real estate.