how does a property become real estate owned 
there is a process that a property must go through before they can become real estate owned first the borrower goes into default if the lender cannot negotiate repayment of the mortgage they can repossess the property this allows them to evict any occupants provided it s a single family home and prepare the property for sale at auction if the property can t be sold it becomes part of the lender s inventory and therefore real estate owned 