Puzzled by the lingo that everyone is using these days to describe distressed real estate? Here’s a quick breakdown of the most commonly used words:
FORECLOSURE – this is a property that the bank has taken over from the owners. It’s now owned by the bank that previously had the mortgage on a particular house.
SHORT SALE – this means homeowners owe more on their mortgage than what the house is worth. They are trying to sell them for less than what they owe the bank.
PRE-FORECLOSURE – this is when a homeowner is behind on their mortgage payment and is at risk of foreclosure. These are generally tomorrow’s short sales.