Glossary of Mortgage Terms

A real estate owned (REO) property is a home that a bank, lender, or government agency has taken back after it failed to sell at a foreclosure auction. Because the lender now holds the property on its books, it typically prices and lists it for sale quickly — often below market value — in order to recover its losses.

A resale house is a home that has already been owned and is now up for sale again, as opposed to a brand-new home.

A restrictive covenant is a legal rule written into a property deed or community agreement that limits how homeowners can use, change, or build on their land.