"Traditional Seller" -- Decoded

Mom, Apple Pie -- and No Banks

Probably the most popular term on MLS at the moment -- right after "mint," "move-in condition," and "experienced short sale agent" -- is "traditional seller."

No, that doesn't mean the owners believe in "Mom and apple pie," dress conservatively (no face jewelry or tattoos), or otherwise have an "Ozzie and Harriet" profile (if you're too young for that reference, think, Phil and Claire Dunphy from Modern Family).

Rather, it means that: a) the Sellers have title to the home, not a bank (it's not a foreclosure); and b) they don't need the bank(s) that hold their mortgage to take a haircut for them to be able to sell (it's not a short sale).

Listings with this language are most common in areas where foreclosures and short sales are dominant, and "traditional sellers" need a way to distinguish themselves.

Are 'Strategic Defaults' Contagious?

New Real Estate Vocabulary

Amongst other things, the current recession/financial melt-down/housing bust has inspired some new real estate terms (or at least adjectives).

So, a "normal" transaction involving one Buyer, one Seller, and two Realtors is now called a "traditional sale," to distinguish it from all the ones that are "lender-mediated" (foreclosures and short sales).

Now, get ready for "strategic defaults" -- also known as "intentional defaults" or "walkaway's."

As in, not paying your mortgage because you can't.

Rather, not paying your mortgage because you've made a rational decision not to.

According to a new academic study, fully 26% of recent mortgage defaults are now of the "strategic" kind. Unfortunately, as more people default, others' reluctance not to weakens, too:

The higher the number of foreclosures in a given Zip code, the higher owners' willingness to walk away, the researchers found, suggesting what they call a"contagion effect that reduces the social stigma associated with default as defaults become more common.

Here's hoping we don't coin too many more new terms before the housing cycle turns up.