Common Industry Terms (Not specific to short sales)
ARMLS
Arizona Multiple Listing Service where most of the homes offered for sale in the Greater Phoenix Area are listed. It is a membership organization and not all real estate agents belong.
As Is
Implied in most Agreements of Purchase and Sale, suggests the buyer is accepting the property in it present state and relinquishes and responsibility from the buyer.
Bankruptcy
a) A person who has done any of the acts that by law entitle his creditors to have his estate administered for their benefit; b) a person judicially declared subject to having his estate administered under the bankrupt laws for the benefit of his creditors; c) a person who becomes insolvent.
Bid
To offer (a price) whether for payment or acceptance.
BPO:
Broker Price Opinion. Banks often use real estate brokers and agents to help determine the market value of a home verses using an appraiser. Homes values determined by a broker or agent are called Broker Price Opinions.
Property Tax
A tax levied on real or personal property
Interest Rate
The percentage usually on an annual basis that is paid for the use of money borrowed from another.
Hardship Letter or Affidavit
When applying to a lender to sell a home as a short sale, the packet must include a letter or affidavit of hardship. This document lets the lender know what is going on in your financial life that makes it impossible or soon to be unlikely for you to make your mortgage payment. This is a very important document when applying for a short sale.
Home Loan
a) Money lent at interest; b) something lent usually for the borrower's temporary use.
Credit Risk
An estimate of the amount of credit that can be extended to a company or person without undue risk.
Credit Union
A cooperative organization that makes loans to its members at low interest rates.
Prime Rate
The lowest rate of interest on bank loans at a given time and place, offered to preferred borrowers.
ARM
A mortgage whose interest rate is raised or lowered at periodic intervals according to the prevailing interest rates in the market.
Home Equity Loan
A loan or credit line that is secured by the equity the borrower has in a home.
Mortgage
A temporary, conditional pledge of property to a creditor as security for performance of an obligation or repayment of a debt.
Home Equity Loan (HELOC)
A loan or credit line that is secured by the equity the borrower has in a home.
Short Sale Property
Real estate, home, condo, land, etc. being sold by the owner for less than the amount due their lender/s. The actual sale has to be approved by the property owner’s lender as well as the property owner.
Market Value
An asset's market value is the price it would fetch in the market, if it were sold in the current marketplace.
Title Insurance
A type of insurance which guarantees the ownership and quality of title to land.
Appraisal
An educated estimate of the value of a property on a certain date given by a person, usually after an inspection of the property.
