Real Estate Terms After the Bust

The real estate crisis that began in earnest in 2007 has changed some of the acronyms and ways in which real estate agents describe and market properties. Here are some of the new terms they’re using:

• S/S – no, it’s not stainless steel. It’s Short Sale, the process of offering to buy a home for less than the mortgage balance.

• Pre-approved short sale – though no short sale is ever really approved until the bank accepts the offer, some agents are using this term to describe a property on which a previous offer of the same or lower amount was accepted, but the deal fell through.

• Motivated seller – this term has been around for a long time, but in the context of the current situation, it signals even more desperation in price and timing.

• BOM – Back On Market is another long-standing term, but it’s taken on a new meaning with regards to foreclosures and short sales. Deals are falling through for a variety of reasons.

• OO/NOO – this is Owner Occupied and Non Owner Occupied. In the foreclosure and short sale market, this could indicate a better property condition if occupied. Also, the tighter lending situation uses these terms to describe condominium situations that could preclude getting a mortgage.

• DPA/DAP – this is Down Payment Assistance or Down Payment Assistance Program.

• HFA – this is short for Housing Finance Administration, and comprises a group of agencies both state and federal that help home buyers to get a property financed.

So, if you see these in listings or marketing materials, you’ll know what the real estate agent is saying. However, as always, BB, Buyer Beware.