Bank-Owned Properties Are Up 41% From Last Year—What Does It Mean For Investors?

BiggerPockets Blog
Published: October 3, 2025
Pricing & Profitability

Summary

Bank-owned properties (REOs) are up significantly, creating potential opportunities for investors to acquire distressed assets. This rise means more foreclosures are completing, potentially expanding the pool of discounted properties for those looking to rehab, rent, or hold. Hosts should be aware of this trend and conduct due diligence before acquiring a property.

Key Insights

  • August 2025 data shows a 41.12% year-over-year increase in bank-owned properties (REOs) nationwide, signaling more distressed homes are entering the foreclosure pipeline.
  • Texas saw the largest state-level surge in REOs, with a 186.75% YoY increase. Other states, like North Carolina and California, also experienced significant growth.

Action Items

  • Track foreclosure data, including starts, notices of sale, and REO properties in your target markets to identify potential investment opportunities.
    Effort: medium
    Impact: medium

Tools & Resources

  • Equity’s Foreclosure Reports: Equity’s Foreclosure Reports, powered by ATTOM Data Solutions, offer monthly updates on foreclosure data.(Real Estate Reports Page)

Common Mistakes

  • Many REOs require significant repairs, making accurate rehab budgeting critical.

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