what is other real estate owned
Best answer
Other Real Estate Owned (OREO) is a bank accounting term that refers toreal estate property assets that a bank holds,but that are not part of its business. Oftentimes,these assets are acquired due to foreclosure proceedings. A large quantity of OREO assets on a bank balance sheet may raise concerns about the overall health of the institution.
People also ask
What is real estate owned?
What Is Real Estate Owned (REO)? Real estate owned (REO) is property owned by a lender, such as a bank, that has not been successfully sold at a foreclosure auction.
What is’other real estate owned-OREO’?
What is ‘Other Real Estate Owned – OREO’. Other Real Estate Owned is a bank accounting term that refers to real estate owned assets as non-earning assets.
What is’real estate owned-REO’?
What is ‘Real Estate Owned – REO’. Real estate owned, or REO, is the name given to foreclosed-upon real estate, such as detached houses, condominiums, townhomes and land, in a lender’s portfolio. Such properties end up in lender portfolios after unsuccessful sales at foreclosure auctions.
What is included in other real estate owned by banks?
Overview This booklet focuses on the acquisition, management, disposition, and accounting of other real estate owned (OREO) held by banks. It defines what is included in OREO, discusses risks associated with OREO, addresses risk management, and summarizes regulatory requirements.