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Is it common for most people to not know the differences between Foreclosures, Short Sales, Preforeclosures,?

Is it common for most people to not know the differences between Foreclosures, Short Sales, Preforeclosures, and Bank REO properties? Is this something that needs some additional clarification for the general public?

Public Comments

1. yea, thats not common speak youll have to explain
2. I'd say so, although people are getting more aware as the rash of foreclosures goes on. Previous to recent times, only investors and those losing their homes really had any need to understand the process.
3. Yes, it is not common. Usually most of us don't deal with real estate on a level where it's crucial to know about it.
4. Yes, it would require additional clarification. I just bought my first home and that was a whole new experience. The home that I bought was a short sell (the seller apparently was in deep debt). And what is Preforclosures? I'm assuming the period between missing payments and full and outright default?
5. yes
6. Sure, no one knows because ignorence is bliss. But , seriously who would provide the clarification? Realtors, accountants, banks................? I doubt it. Too much pressure to profit without regard to the larger societal consequences. Such is the ultimate outcome of blatant capitalism.
7. yes
8. It isn't common knowledge unless of course you work in Real Estate whether it be as a lender, investor, appraiser, RE Agent, etc.
9. Well I'm sure alot of folks aren't sure. Some of these names are relatively new. Unless they are involved in a situation that might involve one of these situations, then no, the general public doesn't need to know. However, it would behoove most to at least know the difference between them and there is a ton of information online for those seeking an education.
10. There is so much misinformation out there, it is not unusual for people to feel that they have a fund of knowledge on these terms, when they really don't understand most of it at all. For instance, the foreclosure listing websites. I regularly receive calls from someone who saw a property on a foreclosure website, thinking it was now for sale. The foreclosure sites pull their information from the required legal notices, and don't routinely update them. Some of these houses were redeemed, short saled, are foreclosed but not on the market, already foreclosed and resold. I don't think the general public understands where the information comes from and that it just isn't accurate. A client sent me a link to the "foreclosures" in my area, for a fact I knew 25% of the houses were inaccurately listed, and if I would have checked them all, I suspect the number would have been much higher. Anyone with some web savvy and a URL can throw a website together, and some consumers take any information off a website as accurate. With money to be made on information that is web accessible, I suspect we as RE professionals are going to have to constantly educate our clients about what is reality and what is fluff.