Real Estate Terminology

by Kerry on October 8, 2012

Like every trade, Real Estate has it’s own lingo. While reading an article recently on the Real Estate Forecast for 2013 by a Forbes contributor, I noted after a couple paragraphs that some of the terminology may be outside the box for non-real estate readers.

So, here are a few definitions of words noted in the beginning of this article.

Short sales: This is when a real estate sale’s proceeds fall short of the balance of debts held against the property. The owner has to accept less than the amount owed in debt.

Shadow inventory:  This can be real estate that is in foreclosure and not yet sold or homes that the owner will put on the market when the prices improve.

Upside-down mortgages: When the value of an asset used to secure a loan is less than the outstanding balance on the loan and the security is real estate with a mortgage, you end up with negative equity and the assets are “underwater”, then the loan/borrower with this mortgage would have an “upside down mortgage”.

If you are interested in talking real estate, feel free to contact me.

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