These are just a few of the Real Estate Terms that are used.
Conventional mortgage loan A type of mortgage in which the underlying terms and conditions meet the funding criteria of Fannie Mae and Freddie Mac. About 35-50% of mortgages, depending on market conditions and consumer trends, are conventional mortgages. In other words, Fannie Mae and Freddie Mac guarantee or purchase 35-50% of all mortgages. Conventional mortgages may be fixed-rate or adjustable-rate mortgages.
FHA Loan is a government mortgage that is insured by the Federal Housing Authority. FHA loans are helpful for individuals who otherwise would not have been given mortgage due to income or credit.
A foreclosed home occurs when a homeowner defaults on a home loan, the lender pursues a foreclosure of the home by selling it at public auction. A foreclosed home can often be bought at an auction for less than its actual market value. This presents a unique opportunity for homebuyer or real estate investor looking to save a great deal of money on their next property purchase.
HUD homes" is a term often heard in connection with government-foreclosed homes. Actually, this is a misnomer, as all these homes started out as homes that had loans backed by the Federal Housing Administration (FHA) . When an FHA-insured loan goes into default, the home then falls under the jurisdiction of HUD, which has the responsibility of disposing of it. For more information on HUD homes visit: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/reo/reobuyfaq
A short sale occurs when a property is sold and the lender agrees to accept a discounted payoff, meaning the lender will release the lien that is secured to the property upon receipt of less money than is actually owed.