What is an REO property?An REO property is “Real Estate Owned” by the bank or other lender. Typically, an REO property has already been foreclosed upon and gone to auction without having been successfully bid on. The property is then owned by the bank and is marketed through traditional methods. In Contra Costa and Alameda County, there are a significant number of REO homes currently on the market. This has recently represented as much as 40% of the total inventory of single family homes. If you are in the market for a home, there is a good chance you will be looking at REO property.