Home Seller Glossary: Foreclosure, Cash Sale & As-Is Terms Explained

Selling a house comes with a lot of jargon, and most of it is never explained plainly. That’s doubly true when the house is tied up in foreclosure, probate, liens, or major repairs. This glossary defines the terms a home seller actually runs into, in plain English, with no sales spin. Where a term connects to a fuller guide, we link to it.

A practical reference for home sellers. Last updated May 2026.

After-Repair Value (ARV)

What a house would be worth after it’s fully fixed up and renovated, not what it’s worth today. Cash buyers start from the ARV, subtract the cost of repairs and their margin, and arrive at an offer. If you want to see exactly how that math works, we lay it out in how cash buyers calculate offers.

As-Is Sale

Selling a house in its current condition, with no repairs, cleaning, or improvements made first. The buyer accepts the home exactly as it stands and takes on whatever work it needs. It’s the standard arrangement in a cash sale. See selling a house that needs major repairs.

Cash Offer / Cash Buyer

An offer to buy a home with funds already in hand, rather than a mortgage that needs lender approval. Because there’s no financing to fall through and no lender appraisal to satisfy, a cash sale closes faster and more reliably. The trade-off is that the offer is below full retail market price. We compare the two paths in cash sale vs. traditional listing.

Clear Title

Legal ownership of a property that’s free of disputes, undisclosed liens, or competing claims. Before any sale closes, a title company confirms the seller has the right to sell and that all debts secured against the home will be paid off from the proceeds. How that works is covered in our process.

Closing Costs

The fees paid to complete a real-estate transaction: title insurance, escrow, transfer taxes, and similar. In a traditional sale the seller typically pays a meaningful share; in a direct cash sale, the buyer usually covers them. The full cost picture is in our timeline & cost comparison.

Code Violation

A notice from a local government that a property breaks building, safety, or zoning rules: an illegal addition, an unpermitted repair, an overgrown lot. Unresolved violations can carry fines and scare off traditional buyers, but a cash buyer can purchase the home with them in place. More in selling a house with liens, back taxes, or code violations.

Contingency

A condition that has to be met before a sale can close, commonly a financing contingency (the buyer’s loan must be approved) or an inspection contingency. Contingencies are the most frequent reason traditional deals collapse. A cash sale carries few or none, which is why it’s more certain to close.

Days on Market (DOM)

How long a listed home sits before it goes under contract. As of early 2026 the national median was roughly 52–55 days, and that’s just to an accepted offer, before the weeks it takes to actually close. A cash sale skips the market entirely.

Deed in Lieu of Foreclosure

Voluntarily signing the property’s deed over to the lender to satisfy the mortgage debt and avoid a formal foreclosure. It’s less damaging to credit than a foreclosure judgment, but you lose any equity in the home and the lender has to agree to it. It’s one of several options covered in how to stop foreclosure.

Deferred Maintenance

Repairs and upkeep that have been put off over time: a roof at the end of its life, an aging HVAC system, accumulated small fixes. The longer it’s deferred, the more it compounds. When the list gets too long to be worth tackling, see selling a house with deferred maintenance and what those repairs typically cost.

Foreclosure

The legal process a lender uses to repossess and sell a home after the borrower falls far enough behind on mortgage payments. It’s a process, not a single event, and it usually takes far longer than people expect: the national average runs well over a year. See how to sell to stop foreclosure and the latest foreclosure statistics.

Judicial vs. Non-Judicial Foreclosure

The two ways foreclosure happens, depending on your state. Judicial foreclosure goes through the courts and is slower (often 6 months to 2 years). Non-judicial foreclosure follows a statutory process without a lawsuit and can move in as little as 90–120 days. Which one applies decides how much time you really have. It’s explained in the foreclosure guide.

Lien

A legal claim against a property for an unpaid debt: a mortgage, unpaid taxes, a contractor’s bill, a court judgment. Liens must generally be paid off before or at closing, in a set priority order. A cash buyer can often still purchase a home with liens attached; details in selling with liens or back taxes.

Loss Mitigation

The set of options a mortgage servicer can offer a borrower in trouble to avoid foreclosure: forbearance, repayment plans, loan modification, and others. Federally-backed loans require servicers to evaluate borrowers for it. Walked through in selling when you’re behind on your mortgage.

Notice of Default (NOD)

The lender’s formal, often publicly recorded notice that a borrower is in default on the mortgage. It typically marks the official start of the foreclosure process, and it’s why a flood of investor letters often arrives right after. What to do when you get one is in the foreclosure guide.

Pre-Foreclosure

The window between the Notice of Default and the foreclosure auction. This is the period when you can still sell, refinance, negotiate, or pursue loss mitigation: the most options you’ll have, and they narrow as the auction date approaches.

Probate

The court-supervised process of settling a deceased person’s estate, including transferring or selling their property. Selling an inherited house often has to wait for or work within probate. See selling an inherited house you don’t want.

Redemption Period

A window, in some states only, after a foreclosure sale during which the former owner can reclaim the home by paying what’s owed. Length varies widely by state, from none at all to a year or more. Worth confirming with a local attorney.

Reinstatement

Bringing a defaulted mortgage current by paying all the missed payments, plus late fees, in one lump sum, which stops the foreclosure. It’s an option up to a certain point in the process, and it works when a temporary setback has since been resolved. Covered alongside other paths in behind on your mortgage.

REO (Real Estate Owned)

A property that’s been through foreclosure and is now owned by the lender or bank, usually because it didn’t sell at auction. By this stage the former owner has lost the home and any remaining equity. That’s the outcome selling beforehand is meant to avoid.

Short Sale

Selling a home for less than the mortgage balance, with the lender’s approval to accept the lower amount. It’s slower than a standard sale because the lender controls the negotiation, and it’s the route when a home is worth less than what’s owed on it. It’s compared with other options in selling when you’re behind.

Underwater / Negative Equity

Owing more on the mortgage than the home is currently worth. An underwater home usually can’t be sold in a standard transaction without bringing cash to closing or negotiating a short sale with the lender. We work with sellers in this position; the mechanics are in behind on your mortgage.

Wholesaling

When someone puts a house under contract and then sells that contract to another buyer for a fee, rather than buying the house themselves. The difference matters: a wholesaler is a middleman assigning your contract, while a direct cash buyer purchases the home outright and closes on it. Knowing which you’re dealing with protects you.

Still have a question?

If a term you’re looking for isn’t here, our cash home buyer FAQ answers the questions sellers ask most often, honestly, including when selling for cash isn’t your best move. Or read how our process works to see the whole sale from offer to closing.

We buy houses nationwide, in any condition or situation, including Florida, Texas, California, and Virginia.