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”.
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