Would you like to buy a foreclosed home, so you can live in it, resell it, or rent it to somebody else? If so, the 3rd (2008) Edition of Keys to Buying Foreclosed and Bargain Homes can prove very helpful, even though the recent federal actions have affected the situation to some degree.
If you know little or nothing about buying foreclosures, the book’s glossary of 186 common terms can prove very useful. See if you can define the following; then see (below) what the book says:
Forclosure Terms:
1. Absolute auction.
2. Acre.
3. Bridge loan.
4. Contingency.
5. Dutch auction.
6. Encumbrance.
7. Et ux.
8. FHA loan.
9. FSBO.
10. Gross rent multiplier (GRM).
11. Inside lot.
12. Origination fees.
13. Pre-foreclosure sale.
14. REO.
15. Short sale.
Definitions:
1. All properties are sold to the highest bidder; seller has no reservation prices.
2. Measure of land containing 43,560 square feet.
3. Mortgage financing between the termination of one loan and the beginning of another.
4. Condition that must be satisfied before the party to a contract must purchase or sell.
5. The price is gradually lowered until a purchase occurs.
6. Any right to or interest in land that affects its value.
7. Abbreviation of the Latin et uxor, which means “and wife.”
8. Mortgage loan insured by the Federal Housing Administration.
9. For Sale By Owner.
10. Sales price divided by the rental rate.
11. In a subdivision, a lot surrounded on each side by other lots, as opposed to a corner lot.
12. Charges to a borrower to cover the costs of issuing a loan.
13. Purchase of a home from a borrower who is in default on the mortgage loan before the lender forecloses the mortgage.
14. Real Estate Owned (by banks other than that used for banking operations).
15. A pre-foreclosure sale in which the lender agrees to take less than the outstanding balance of the mortgage loan.