Bank Owned House, English meaning Real Estate Owned or REO. Also known as REO house, suggests that it is because the owner could not pay the mortgage, the redemption payment over a certain period, they shall be recovered by the lending bank's house. Program is such that ownership of banks in the back of the house after the court handed to the auction. In the auction, buyers can only use cash to trade, and there is no title insurance. Exceed $ 200,000 dollars or more so the house is easy to bids. Banks had to sell on behalf of real estate brokers. After re-listed after this procedure attract buyers of houses was called "bank house (REO)".

Bank trading house, with a more "foreclosures" better protection and greater security. In the trading process, banks traded from the house into the ESCROW procedures, to home inspection, and title insurance are identical with the normal buying and selling homes, worth buyers at ease. As banks close to second-hand housing market asking price than the market price housing, so housing for many families with limited financial resources, it is indeed a great boon. In addition, it is a good opportunity to investors bargain. Therefore, it can be said to have become in this era of economic downturn and recession, the most sought after popular market.