Real Estate Vocabulary - A

Jumping into Real Estate, as a buyer or a seller, can be overwhelming and confusing if you're not up to par on your terminology. Here are a few terms to help!

Advance Commitment - The institutional investor’s prior agreement to provide long-term financing upon the completion of a construction project.

Advance Fee - 1. A fee paid in advance of any services rendered such as in obtaining a loan. 2. Sometimes unlawfully charged in connection with the illegal practice of obtaining a fee in advance for the advertising of property or businesses for sale with no intent.

Advancement - A gift from a parent to a child in anticipation of the share the child will eventually inherit from the parent’s estate which is intended to be deducted from the inheritance.

Adverse Possession - A method of acquiring title to real property through the continued possession of the property under certain conditions for the statutory period by a person who is other than the owner of record. 2. A means of acquiring title where an occupant has been in actual open notorious and continuous occupancy of a property under a claim of right for the required statutory period.

Aesthetic Value - The additional value a property enjoys based on subjective criteria such as look or appeal.

Affidavit - A statement or declaration reduced to writing and sworn to or affirmed before a public official who has authority to administer an oath or affirmation.

Affirmative Action Program - A detailed plan used to overcome the causes and affects of discriminatory policies in the hiring employment and/or training of minority members of society.

Stay tuned to the blog for more important Real Estate terms to come! And feel free to check out my website for more information on finding your dream home!


Source: RealEstateWords

What is a Short Sale?

A real estate short sale is when your mortgage banking establishment agrees to accept less than what is owed on the home.

Basically it is an alternative to selling your home when you owe more than what your home is worth. This is a less costly alternative to foreclosures, which banks prefer. This is why banks have become more lenient with accepting short sale offers.

For more information on short sales, visit my website.

Source: http://www.whatisashortsale.org/

What is a Strategic Default?

What is a strategic default?

Let’s first define strategic default in simple terms. Wikipedia says:

A strategic default is the decision by a borrower to stop making payments (i.e. default) on a debt despite having the financial ability to make the payments.

This is particularly associated with residential and commercial mortgages, in which case it usually occurs after a substantial drop in the house’s price such that the debt owed is (considerably) greater than the value of the property – the property negative equity or “underwater” – and is expected to remain so for the foreseeable future, such as following the bursting of a real estate bubble. Such borrowers are called “walkaways.”

How do Americans feel about strategic default?

• The number of underwater homeowners who believe it is okay to default on your mortgage if you are under financial distress has almost doubled in the last twelve months (14% to 27%).
• 47% of people that are underwater and behind on their mortgage have considered strategic default.
• Those who know a strategic defaulter are more likely to have considered defaulting.
• 1 in 5 Americans knows a strategic defaulter.

Basically, as more people enter into negative equity, more will be tempted to ‘walk away’ from their mortgage obligations which will increase the homes going into foreclosure.

For more information on this and other real estate news, visit my website!

Source: KCM

Chase Bank Gives Incentive to Florida Homeowners

Homeowners across Florida, especially those behind on their mortgages, are looking for a way to improve their situation. Chase has been making these Florida homeowners a deal they can't refuse! Since last fall, Chase has been offering a sum of money ranging from $10,000 - $20,000 in exchange for the homeowner agreeing to a short sale on their home.

Simply stated, Chase is offering to forgive and forget any money that is owed to the bank as well as handing out cash bonuses to those homeowners willing to have a short sale on their home.

In doing so, banks forgo messy and time consuming foreclosures for both themselves and the homeowners. If you're a homeowner who can benefit from this process, contact your Chase lender or visit one of Chase's 13 mortgage help centers across the state.

While this deal is only available based on individual circumstances, taking the step to find out if you qualify could be your best move!

For more information on the housing market in South Florida, visit my website!


Source: The Real Deal