Considering a Bank-Owned Home? Here’s What You Should Knowbr br If you're thinking about buying a home that's owned by a bank, it's important to understand what that really means. These properties are often called REO homes, short for "Real Estate Owned." Sometimes, these homes are still occupied by the previous owners or tenants, which can make the process a bit more complicated.br br Bank-owned homes can be a great deal and might cost less than similar properties on the market. But there are a few hurdles to be aware of. Knowing what to expect—and how the process works—can help you make a smart, informed decision.