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Understanding Foreclosed and Distressed Homes Terms
Buying or investing in foreclosed or distressed homes, isn’t really too complicated— if you know the lingo, of course. Like most things in life that involve loads of paperwork, there’s a distinct bureaucratic vocabulary that unless you’re in the industry, or have a qualified interpreter, you’ll be left scratching your head. Lucky for you, we’ve compiled a list of some of the most commonly used terms and buzzwords that are typically tossed around when people are discussing distressed homes and foreclosed homes:
Deed-in-Lieu: This process is usually done by a home-owner to avoid foreclosure proceedings. It means that the homeowner can voluntarily relinquish all claims on a home by signing the deed over to the bank.
Lien: Any legal claim made against a property.
Pre-foreclosure sale (short sale): when a borrower sells a property for less than what is owed rather than going into foreclosure.
Appraisal: a document that states the property’s fair market value based on the sales of comparable homes in the area. It is often required by the lender to determine the mortgage amount.
Forbearance: if a borrower is late on making payments, a lender can decide to grant forbearance (usually for financial hardship) and not take legal action. Both the lender and borrow must agree on terms to make the loans current.
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You can skip to the end and leave a response. Pinging is currently not allowed.Posted on: Monday, September 6th, 2010 at 9:00 am
Posted in: Foreclosed Houses, Uncategorized
Tags: distressed homes, renovated homes, renovated house, sell your home fast, short sale help