What term describes properties owned by a bank due to foreclosure?

The term that describes properties owned by a bank due to foreclosure is "Real Estate Owned properties," often abbreviated as REO. This term refers specifically to properties that have been taken over by the bank after the borrower defaulted on their mortgage, and the properties were not sold at auction. Once in the bank's possession, these properties become part of the bank's inventory and are typically listed for sale to recover some of the funds lost due to the foreclosure.

This distinguishes REO properties from other terms presented. For example, while "bank assets" might refer to various types of property or investments a bank may own, it is not specific to properties acquired through foreclosure. Similarly, "exclusive listings" are a real estate term referring to properties listed with a specific broker exclusively, which does not directly connect to the concept of foreclosure. "Non-performing assets" is a term used in finance to indicate loans that are in default but does not specifically refer to the physical properties the bank has acquired.

By understanding these distinctions, you can see why "Real Estate Owned properties" is the most accurate answer in this context.