This is timely information for today's consumer. We are finding there is a whole new language that has sprung from today's market! Enjoy!
The real estate industry has gone through many changes in the past two years resulting in new terms, titles, and expressions. Here are a few that you will encounter in today's market:
Asset Manager Asset Managers handle preforeclosure valuations and inspections for lenders. After a foreclosure is completed, they coordinate with a real estate agent to get the property listed and sold.
Bankbox A lockbox put on by a bank vendor that has a code instead of a key. Used so vendors and non-Realtors can access the property during the prelisting process, and the course of escrow. The Northern Nevada MLS mandated that effective June 1 all bank-owned properties must have a blue NNMLS lockbox on their homes in addition to the bankbox. Agents would show up with buyers and not be able to access the property because they didn't know the code. That has been remedied, but the bankboxes are still in play to facilitate the property's marketing prep and escrow functions.
Forebearance Forbearance is an agreement by the lender to postpone a borrower's monthly payment for a limited and agreed on time frame and is used as a way to prevent foreclosure. The loan continues to accrue interest during a forbearance. Modified terms and conditions can apply including some repayment of arrearage up front and a catch up within 24 months.
Highest and Best "Highest and Best" is a typical bank counter offer when they have multiple offers on a bank-owned property. They ask the offerors to submit their Highest and Best offer. The phrase has been used so much that it is now simply said as Highest and Best, as in, "The bank is going Highest and Best on all offers." Used to entice bidders to increase their bid and get to the highest price in the shortest time possible. Some bidders up their bid, others walk because they don't want to play the game. It can pay to stick it out - you will still get the good value of a bank owned property if you are the successful bidder.
Homesteps HomeSteps is a division of Freddie Mac touted to be the most advanced system in the industry for managing REO dispositions. HomeSteps is intended to streamline the sales processes of Freddie Mac foreclosures through enhanced communication and online technology.
HVCC, Home Valuation Code of Conduct, the new "appraisal rules". Effective May 1, 2009 and applies to loans that will be sold to FNMA and Freddie Mac. Intended to strengthen the appraisal process against the possibility of improper influence and coercion. Has caused significant delays and consternation.
Portal Listing agent dealings with an asset manager are almost always through a portal, a website on the internet where they enter the information in a form-type environment and communicate with their asset manager without the use of phone or email.
Trailing Income The income of the spouse/partner that quits his/her job in their old town to follow the primary income spouse. Historically, their prior income was allowed for qualifying, but new regulations put severe limitations, restrictions, or eliminations on this trailing spouse/partner income.
Our advice: Be sure that you and your agent keep up as the real estate and loan industries change. Changes are constantly being implemented and many are effective immediately. They can change the course of an escrow in a matter of hours. These times are unprecedented and one must be constantly aware of changes and pending changes ... they can cost you money, or worse, so pay attention.
These are the best of times and the worst of times ... these are the good old days. When it comes to choosing professionals to assist you with your real estate needs... Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781-5472. firstname.lastname@example.org, www.carsonvalleyland.com