By: Carl VogelPublished: August 5, 2010Before you put your home up for sale, understand how the right comparable sales help you and your agent find the perfect price.How much can you sell your
Foreclosure Real Estate Terms Decoded
Foreclosure Real Estate Terms Decoded
There’s a whole other “Lingo” or language when it comes to Real Estate Foreclosure properties. Knowing this language can really help decode this foreclosure market. Here’s a list of Foreclosure Real Estate Terms Decoded to help you pick up the “Lingo”. If you come across any more, feel free to email me [email protected].
AOS – “Agreement of Sale” – Documents you sign to make an offer on a property.
AS IS – “AS IS” – Seller will make no repairs for the buyer. Bank foreclosed properties are all sold in “AS IS” condition.
Bank Approval Needed – “Short Sale” – The bank holding the mortgage must approve the sale at less then what is owed on the mortgage.
Bank Owned – “REO” – Bank foreclosed through the sheriff sale and now owns the property.
BPO – “Broker Price Opinion” – Real estate broker gives their opinion of value of the property.
Buyer Walked – “Short Sale Too Long” – Buyer gave up waiting for bank approval of the Short Sale.
Certified Funds – “Bank Check for Deposit Funds” – Bank’s require deposit money presented with the offer in Bank Check or Certified Check only and will not accept Personal Checks.
Contingent on Recording of Sheriff’s Deed – “Sheriff Releases the Property” – After the sheriff sale the sheriff’s department checks all was completed properly and issues the Deed of ownership to the bank.
De-Winterization – “Utilities Turned Back On” – Bank properties are Winterized to protect the pipes throughout the property. Banks can require up to $250 from the Buyer to have the utilities restarted for home inspection or mortgage appraisal.
Deed-in-Lieu – “Owner Gave it to the Bank” – Owner signed over the Deed to the property to the bank holding the mortgage instead of going through the foreclosure and sheriff sale.
Distressed Property – “Needs Work” - Refers to the property condition, usually needs considerable work.
DOM – “Days on Market” – Number of days the property has been on the market for sale.
Foreclosed Property – “Bank Sheriff Sale Completed” – Bank or mortgage company filed mortgage foreclosure and sheriff sold the property. Back to the bank or third party buyer at the sheriff sale.
HUD – “US Department of Housing & Urban Development” – FHA mortgages that defaulted and were insured by HUD. HUD pays off the bank who foreclosed and now owns the property to sell.
HUD 1 – “Closing Statement Signed at Settlement” – Official Federal Reporting Form used to detail all charges for both Buyer and Seller when purchasing a property. Prepared by the title company.
LBP – “Lead Based Paint” – Properties built prior to 1978 paint used may contain lead. Lead is a poison and can cause serious health issues.
No SDS – “No Sellers Disclosure” – Banks are not responsible to complete a Sellers Disclosure on properties they obtained through foreclosure.
Owner Occupied – “Buyer will Live There” – Owner will live there as their primary residence. Banks usually give preference to owner occupied buyers on foreclosures prior to considering an investor.
Non-Owner Occupied – “Investor Purchase” – Investor buying to rent or resell the property and does not intend to live in it.
Pre-Approved Mortgage – “Letter from Mortgage Lender” – Banks will not accept an offer without proof the Buyer is qualified to purchase the property including credit and asset verification.
Presentation of Offers – “Bank’s Our Way or No Way” – Procedure and documents needed to present a bank foreclosure offer.
Proof of Funds – “Show the Bank the Money” – Bank or investment statement or line of credit being used to purchase a property on cash purchases.
REO – “Real Estate Owned” – Bank or Mortgage company owns the property.
Short Sale – “Bank Takes Less Then Owed” – Owner is asking the bank to take less then what is owed on the mortgage to sell the property.
Short Sale Active with Contract – “Have an Offer and Wants a Backup” – An agreement to purchase is in front of the bank awaiting approval and they are looking for a second buyer as a backup.
Sweat Equity – “Your Hard Work” – Increase in the value of the property due to your hard work making improvements.
Title Insurance – “Cover your Purchase Insurance” – Title insurance covers you as the Buyer against all claims, mortgages, liens, unpaid bills, etc. filed against any prior owners.
TLC – “Tender Loving Care” – Refers to the property condition usually needs some work.
Transfer Tax – “State & County Charges” – Tax due to transfer ownership of a property. In Montgomery County 2% usually each side pays 1%. On bank foreclosures, the bank usually will refuse to pay transfer tax and the buyer is responsible for all 2%.
U&O – “Use & Occupancy Certificate” – Some townships require an inspection to meet standard building codes prior to allowing occupancy. Banks will not perform U&O inspections or pay for any requirements needed.
Underwater – “Owes More than it’s Worth” – Balance of the mortgage is more than the property can be sold for compared to similar properties recently sold.
Hope This Helps
Kathleen McKinney, Realtor - REO Specialist
Platinum First Realty, 708 Main St, Harleysville, PA 19438
Office 267-647-9800 ext 412 -- Email: [email protected]
Facebook "Montco Foreclosure Homes" -- Website: www.reohomespa.com
My experience level is at your disposal ! My background in mortgages and rock solid understanding of how to finance a home ... will benefit all of mymy customers! I exceed all my customers expectatio....
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