ResortQuest Real Estate

Appraisal
A valuation or an estimation of value of real property by a person of suitable qualification.

Closing
The termination of a real estate transaction whereby the seller delivers title of real property to the buyer in return for payment of the purchase price.

Closing Costs
Expenses incurred by the seller and the buyer in the sale of real property which must be paid in addition to the purchase price.

Deed
A written instrument signed and witnessed by two persons which transfers title to real estate from one person to another.

Deed-in-Lieu of Foreclosure
The borrower voluntarily gives the deed back to the bank to satisfy a loan that is in default and avoid Foreclosure proceedings. Deed-in-Lieu is often referred to as a “friendly foreclosure”. The impact to credit may not be as substantial as a formal foreclosure.

Deficiency Judgment
In most states, lenders can seek to recuperate any amount they were unable to recover in a foreclosure or Short Sale. This is called a Deficiency Judgment.

Earnest Money Deposit
When buyers execute a Contract to Purchase Real Estate, the contract specifies how much money the buyer is initially putting up as a good faith deposit to secure the contract; this is the Earnest Money Deposit (EMD). This amount will be credited towards the total of the Down Payment if financing is involved or it will be credited the balance of total purchase price in a cash sale. An earnest money deposit shows the seller that you are serious enough about buying his property that you are willing to “put your money where my mouth is”.

Fannie Mae
Federal National Mortgage Association, a government-sponsored enterprise which buys and securitizes mortgages for resale in the secondary market.

FHA
An acronym for Federal Housing Administration, which is an agency of the Department of Housing and Urban Development. The FHA provides mortgage insurance for certain residential mortgages.

Fixed-rate Mortgage
A home loan with a predetermined fixed interest rate for the entire term of your loan. This means that the interest rate will never change for the length of the loan.

Foreclosure
A legal procedure in which property securing a defaulted loan is sold by the lender in order to repay a borrower’s loan.

Freddie Mac
A government-sponsored enterprise which buys and securitizes mortgages for resale in the secondary market.

Good Faith Estimate
When a borrower submits a loan application, the lender will provide a document which itemizes the lender’s “best guess” estimate of all the costs associated with obtaining a loan. Federal law requires the lender to provide the buyer a Good Faith Estimate within 3 days of loan application.

HUD 1 Statement
The HUD-1 is a form used by the closing agent (or settlement agent) to itemize all charges imposed upon a borrower and seller for a real estate transaction. It gives each party a complete list of their incoming and outgoing funds. Any fees associated with the transaction that have been paid prior to closing will be included and identified as POC (paid outside of closing).

Mortgage
A legal document giving a lender a lien on real estate to secure repayment of a loan.

Short Sale
A short sale is a sale where the net proceeds from the sale won’t cover the total mortgage obligation and closing costs.

Special Warranty Deed
The special warranty deed is not nearly as protective of the buyer as is the general warranty deed. The grantor of a special warranty deed conveys the property with two warranties:

• Grantors warrant that they have received title.
• Grantors warrant, unless noted specifically in the deed, that the property was not encumbered during their period of ownership.

Grantors of the special warranty deed, in effect, only warrant the title against their own actions or omissions. They warrant nothing prior to their taking title. If specifically stated in the deed, other warranties can be conveyed. Special warranty deeds are frequently used by executors and trustees.

Title
Written evidence of ownership in property.

Title insurance
Insurance that protects an interested party, either the owner or the lender, against defects that would affect legal ownership of the property.

VA
An acronym for the Veterans Affairs, a branch of the federal government that provides home loan guarantees for qualified veterans of U.S. military forces.

What Can the Distressed Properties Division Do For You?

For Buyers: Information and explanations of the current market climate.

For Sellers: Find possible solutions to avoid foreclosure.

Commercial Investors: Vital Information for informed decisions.

Asset Managers: Services and resources of ResortQuest.