Terms to keep in mind while you search for a home
“Active” – This means that the home for sale is available and is either a bank-owned home or a regular seller. “Active Short Sale” – This term means it is an active listing but the home is being sold for less than the current owner owes on the property and will require lender approval once the offer is submitted (see Short Sale Process) “Active Short Sale Contingent” – This term means the same as above except the seller has already accepted an offer and has submitted that offer to their lender for the short sale approval; therefore, it is contingent upon the lender approving the accepted offer. When a home is listed as "contingent" in the MLS it also means they would be willing to accept offers in back-up. "Bank Owned Property" - This refers to homes that have been foreclosed and are now owned by a bank. "Foreclosures" Foreclosures seem to be the buzz word of the market place. They can be referred to as "REO" properties or "Bank-Owned" properties. All of the lingo can be a bit confusing. So what is an REO? REO stands for Real Estate Owned. REO properties are typically owned by a corporation whereas a bank owned property is just that - owned by a bank. In either case, the home has been foreclosed by the lender. As a buyer, the one advantage to pursuing a foreclosure is that the process is quite a bit faster than a short sale. Another thing to remember is that the sellers of foreclosures are exempt from full disclosures. The banks who own the properties do not know the history of the home so as a buyer it is important to do a lot of investigating. "Pending Sale" - This term means that the home has an offer on it that has been accepted and now the home is in escrow and there are to be no mo. "Pending Bring Back Up" - This term means the home is in escrow with an accepted offer but the seller would like offers to be in a back up position in case the first offer does not transact. "Pending Short LApproval" - This means that the home is a short sale, the seller has accepted an offer to be sent to the lender for approval and they prefer no more showings or offers. “Short Sale” – This is when a seller is trying to sell their home for less then what they owe on the loan. These sales require bank approval (see short sales). "REO" - This refers to "Real Estate Owned" property; in other words, the home is not owned by a single person rather a corporation, an investor or a business.
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