ACRONYMS
CID = Common Interest Developments – The most commonly used term for the category of homes that are part of a development where there is a significant portion of the investment which is held in common with other development owners. This is the generic category for Condominiums and Townhouses.
MLS = Multiple Listing Service – The official venue for publicizing listings that are listed for sale and the source of extensive market data for sold listings
ORE = Owned Real Estate. See REO.
REO = Real Estate Owned. Properties that have been foreclosed upon and are now owned by banks. Also known as Owned Real Estate (ORE).
SFR = Single Family Residence – the most commonly used term for homes which are separate although there is also a category of SFR which are attached (duets and row houses).
TERMS
Foreclosure: A method of dealing with borrower’s inability to pay the loan which involves the following: 1) An owner’s right to their property is terminated, usually by default, 2) property is purchased back by the bank or public auction (sheriff’s sale), 3) proceeds of public auction applied to mortgage debt, 4) most states will zero out deficiency balance.
Deed in Lieu: A method of dealing with a borrower’s inability to pay the loan which involves the following: 1) an owner avoids foreclosure by voluntarily surrendering their property by deeding to the lender as satisfaction for the debt, 2) Deed in Lieu allows the lender to take possession sooner than would be possible through formal foreclosure.
Short Sale: A method of dealing iwth the borrowers’ inability to pay that involves the following: 1) a short sale typically is executed to prevent a home foreclosure 2) a short sale is nothing more than negotiating with lien holders a payoff for less than what they are owed, or rather a sale of a debt, generally on a piece of real estate, short of the full debt amount.
