Welcome to HomeSelling 101!
We’re glad to see you in class today, it’s a good one… ” Short Sale Terms for an Upside Down Real Estate Market”
When it comes to a glossary and real estate terms, I think it’s about time to bring a few things up to speed…like today’s real estate vocabulary. Here’s a quick overview for the current real estate market.
Short Sales = Most people know it’s when a property (home, condo, apartment building, commercial property, whatever…) sells for less than the existing indebtedness, i.e. loan balance (s). Short sales require the lender’s approval to sell and accept less than due. Most also know a short sale can be anything but short, it require patience.
Deed-In-Lieu of Foreclosure = Takes place when an owner (with the lender’s consent) executes a deed (change of ownership) in favor of the lender to avoid a foreclosure. It’s up to the lender to agree and it also can be conditional clear title, meaning no junior liens. If you’re upside down and have a second loan, back property taxes, association dues, etc. it’s not going to happen. Lenders are not willing to accept a property with all the “excess baggage” e.g. second loan, home equity line, liens etc. that are normally wiped out with a foreclosure.
Cash for Keys = Is a cash payment from the lender on a foreclosed property to the occupants, normally a tenant to vacate in a timely manner and leave the property in good condition. Payment to an occupant/tenant is usually negotiated through the listing agent to provide immediate occupancy.
So thanks for being in class today, if you’re looking for real estate help, contact me and you will be moved to the head of the class!