Resources for Foreclosure Listings

There are several reasons that you might have interest in purchasing a foreclosure house. There are the obvious personal reasons. But, as a business, foreclosure houses are a great investment. Even if the houses are in disrepair, you can still often obtain a profit when you place them back on the market. As you explore foreclosure houses as a possible investment, there are few terms you need to be aware of, including the different phases of foreclosures.

Lis Pendens

Lis Pendens, or LIS, is the second part of the pre-foreclosure process. When a buyer defaults on mortgage payments, he first receives a Notice of Default (NOD) as a warning. The Lis Pendens follows as a notice of lawsuit filing.

Short sale

A short sale is when a homebuyer, who missed a mortgage payment, makes an offer to purchase the house from the bank for less than the amount still owed on the mortgage. This is an effort to avoid foreclosure.

NFS

NFS stands for notice of foreclosure sale. NTS, notice of trustee sale, is equivalent when it comes to foreclosure. Both mean that the house is under foreclosure and typically sold at auction.

REO

REO stands for real-estate owned. Also known as bank-owned, this is the last stage in the foreclosure process. The lender takes possession of the property and then sells it to recover its loss.

HUD home

A HUD home is a foreclosure house sold by the U.S. Department of Housing and Urban Development because it became HUD property due to its FHA-insured mortgage.
U.S. Department of Housing and Urban Development.

Market value

The market value of a house is the price a buyer would pay in a typical sale. In regard to foreclosures, it gives buyers a basis of comparison as to what you would pay for the property if purchasing under normal circumstances.