For many consumers just the mention of the “F” word, “foreclosure” and a wave of emotions and fears come to the heart and mind. And rightfully so! Frankly, I find there is a tremendous amount of misinformation in the market place about foreclosures. I also find there is a general lack of understanding and knowledge about the often used terms associated with foreclosure. Hence the reason for writing this post.
Educating Houston Home Buyers, Sellers and Homeowners Too!
One thing to note before you review the definitions below. It is crucial you solicit the assistance of an experienced Houston REALTOR who is a foreclosure specialist and a neighborhood expert if you are thinking about buying a Houston foreclosure property. The same is true if you are thinking about a Houston short sale! Without the assistance of a Houston REALTOR and the resources we have available for buying, and selling foreclosure properties, conducting a transaction on your own can be risky business.
- What is Foreclosure? Foreclosure is the forced sale of real estate to repay a debt.
- What is a Short Sale? Often discussed in association with foreclosures, a Houston short sale allows you to sell your Houston property for less than what you owe to the mortgage company. Never take for granted or assume that your lender will negotiate the loan balance amount you owe on your loan.
- What is a Deficiency Judgment? A deficiency judgment is defined as a court judgment that results when the defaulting Houston homeowner/borrower owes monies from the difference between what was owed on their property and the amount of money received from the actual foreclosure sale.
- What is Negative Equity or the State of Being “Upside Down” in a Mortgage? Negative equity occurs when the outstanding home loan on a home exceeds its market value.
- What is an REO Property? An REO property is one that stands for “Real Estate Owned” property. The REO property is acquired by a lender through foreclosure and held in inventory until sold.
Knowledge is Power!
For Houston homeowners, understanding what foreclosure is and how you can possibly avoid it is critical to your families peace of mind and protecting your finances too. If you need assistance in this area, we are here for you. Contact us immediately and we will determine your best course of action.
Help is on the Way!
In future post I will offer additional resources to help you through the maze that is foreclosure and Houston short sales.
Until next post,