Robert Strupp, Esq.
Housing Champion
Shares Why We Should be Concerned Secretary Ben Carson Mistakes the Real Estate Term "REO"
”While testifying on Capitol Hill Housing and Urban Development (HUD) Secretary Ben Carson mistakes the real estate term "REO" with the popular brand cookies “Oreo" when asked by Democratic Rep. Katie Porter to define “REOs”
Dr. Michael Robinson: How would you explain REO to a non-housing expert? And what is REO?
Robert Strupp, Esq.: When a homeowner goes in default, the lender has the right to foreclosure and become the owner of the property. When this happens, the property is real estate owned (by the lender). The lender may be a government agency such as FHA or Fannie/Freddie or a bank.
Dr. Michael A. Robinson: Should we be concerned that the Sec.of HUD appears to be unfamiliar with the term REO?
Robert Strupp, Esq.: Yes, I would be very concerned that the HUD Secretary does not know what REO means.
Dr. Michael A. Robinson: Should we be concerned that the Sec. of HUD appears to be unfamiliar with the term OREO?
Robert Strupp, Esq.: I don’t think it is relevant to the issue Carson was asked about. Most often, banks acquire other real estate as a result of foreclosure on real estate property following a default by the borrower who had used the property as collateral for their loan.
Robert Strupp, Esq.: When a homeowner goes in default, the lender has the right to foreclosure and become the owner of the property. When this happens, the property is real estate owned (by the lender). The lender may be a government agency such as FHA or Fannie/Freddie or a bank.
Dr. Michael A. Robinson: Should we be concerned that the Sec.of HUD appears to be unfamiliar with the term REO?
Robert Strupp, Esq.: Yes, I would be very concerned that the HUD Secretary does not know what REO means.
Dr. Michael A. Robinson: Should we be concerned that the Sec. of HUD appears to be unfamiliar with the term OREO?
Robert Strupp, Esq.: I don’t think it is relevant to the issue Carson was asked about. Most often, banks acquire other real estate as a result of foreclosure on real estate property following a default by the borrower who had used the property as collateral for their loan.