If a property has gone to auction but the lender didn't accept the bid, what stage of foreclosure is it likely in?

The correct response indicating that the property is in the Real Estate Owned (REO) stage is accurate because this phase occurs after a foreclosure auction when a lender or bank takes possession of the property because the bid was not accepted. At an auction, if the highest bid does not meet the lender’s requirements for the property, the lender will retain ownership. This results in the property being categorized as REO, meaning it is now owned by the lender, who can then proceed to sell it through traditional real estate channels.

In contrast, pre-foreclosure refers to the period before the property goes to auction, during which the owner may be facing financial distress but still retains ownership. Both judicial and non-judicial foreclosure refer specifically to the legal processes that lead to the auction but do not represent the status of the property after an auction has taken place. Thus, once the lender does not accept a bid at auction, the property moves directly into the REO phase.