When you’re looking into buying your first home you have to learn the lingo. But there’s no Rosetta Stone for real estate and I found out the hard way that “escrow” isn’t a fancy French appetizer.
Luckily, Trulia has come out with a cheat sheet for post-recession real estate terms. I snagged a few of my favorites:
REO:
Real estate owned. This refers to homes that were foreclosed and repossessed by the former owner’s bank. Buying this property will almost always mean taking the place in as-is condition. But it also could mean a great deal.
Coveted:
Expensive. Even in today’s market there are recession-proof neighborhoods that have been fairly immune to the foreclosure epidemic and have seen home values continue to rise.
BOM:
Back on the Market. This is a home that was in contract to be sold, but is now back on the market. It is often accompanied by the phrase “no fault of the house,” which may describe a situation in which the buyer failed to get final loan approval. Or it could mean something wrong with the home or the asking price.
OO/NOO:
Owner-Occupied and Non-Owner Occupied. Some bank-owned property sellers will consider offers from owners who plan to occupy the home as much as a week before they will look at NOO or investor offers.
Fannie, Freddie:
Fannie Mae and Freddie Mac. These federally controlled company/agency hybrids back most non-FHA (conventional) home loans, and thus provide the guidelines most Conventional loans must meet, including guidelines around seller incentives like how much closing cost credit a buyer can receive.
FTH/FT:
First-time homebuyer/First-time buyer. Cities, states and large employers like universities tend to be the last bastion of these programs which offer mortgage financing or down payment assistance, usually to people who have not owned a home in the relevant city or state anytime in the preceding 3 years.
HFA:
Housing Finance Administration. This acronym refers to a loose body of state and regional agencies which offer financing and counseling programs, from down payment assistance to foreclosure relief assistance for unemployed and underwater homeowners.
Check out the rest of the list here.
What weird real estate terms have you come across?
