US Foreclosure Listings Key Terms

Understand US foreclosure listings key terms to increase your buying skills

US foreclosure listings are the lists of foreclosure properties currently available for purchase. Usually foreclosure properties are sold at a lower price than regular properties, making them a great investment opportunity.

The process of purchasing foreclosure properties can be complex unless you know what you are doing. Therefore, if you are a business that invests in foreclosure properties, understanding foreclosure listing key terms will help you make the right decisions.

Foreclosure

Describes a procedure in which a bank or other lender of a property resorts to legal action when the owner fails to make payments as contracted. Some foreclosures are non-judicial, meaning the mortgage agreement gives the bank the right to foreclose without legal action. A majority of foreclosure properties are in poor condition and require some work.

Pre-foreclosures

Pre-foreclosures refers to properties that are soon to be in foreclosure but are currently in limbo, pending legal action against the owner. If you can find these properties, you can sometimes negotiate sales with the current owner, which would put you at an advantage.

Lis pendens

A lis pendens is a legal notice to prospective buyers stating that legal action on a property is currently pending. In some cases, learning that a property is soon to be in foreclosure can be a great advantage.

U.S. Department of Housing and Urban Development (HUD)

US Department of Housing and Urban Development is a government entity that offers foreclosure listings.
HUD offers extensive foreclosure information, including refinance options and an extensive glossary of terms.

Distressed properties

Distressed properties refer to any property that is considered to be in bad physical condition. This also includes properties that are in bad financial condition (for example, if the value of the home is less than the amount owed on it).
The Distressed Property Institute is an association of licensed realtors committed to helping people avoid foreclosure.

Assignment of Deed Trust

This is a written document that describes the transfer of mortgage ownership and beneficial interest from one person to another in a home purchase.
Kaktus goes into further detail on all aspects of transferring a deed of trust, including the formalities necessary to complete this process.