After-Repair Value (ARV)The estimated market value of a property after all necessary repairs and renovations have been completed. The foundation of the maximum allowable offer (MAO) calculation.As-Is ValueThe current market value of a property in its present condition, without repairs. Typically 60-80% of ARV for moderately distressed properties.BPO (Broker Price Opinion)A written estimate of a property's value prepared by a real estate professional, based on comparable sales. Not a certified appraisal, but widely used for short sale negotiations and REO pricing.Certificate of SaleIssued by the court clerk after a winning bidder pays their full bid at a Florida foreclosure auction. The 10-day redemption period begins from this date.Certificate of TitleThe deed issued by the county clerk after the 10-day redemption period expires following a foreclosure auction. This is the new owner's proof of title — conveyed as-is with no warranty.Chapter 7 BankruptcyA complete liquidation of the debtor's non-exempt assets by a court-appointed trustee. Investment properties are not exempt under Florida law and are sold to pay creditors.Chapter 11 BankruptcyA business reorganization in which the debtor continues operating while restructuring debts. Real estate assets are often sold via 363 sale to fund the reorganization.Chapter 13 BankruptcyIndividual reorganization allowing debtors to repay creditors over 3-5 years while keeping their assets. If the plan fails, the case converts to Chapter 7 and assets are liquidated.Credit BidWhen a lender bids up to the amount owed at a foreclosure auction instead of cash. If no third-party bid exceeds the credit bid, the lender takes title to the property (creating REO).Deficiency JudgmentA court judgment against a borrower for the difference between what was owed and what was recovered at the foreclosure auction. Florida allows deficiency judgments (unlike some states).Distress DiscountThe percentage below comparable market value that a distressed property is acquired for, due to the seller's timeline pressure, property condition, or lien complexity.363 SaleA bankruptcy court-supervised asset sale under Section 363 of the Bankruptcy Code. Provides the buyer with court approval that extinguishes pre-bankruptcy claims (with certain exceptions).Final Judgment of ForeclosureThe court order entered in a Florida foreclosure case that sets the total amount owed and the auction date. Issued after summary judgment is granted.ForbearanceA temporary agreement between a lender and borrower to pause or reduce mortgage payments, typically during financial hardship. Expired forbearances are a leading cause of new foreclosure filings.HOA Super-LienIn Florida, HOA liens have limited super-priority status for up to 12 months of unpaid assessments — meaning this portion may survive a first-mortgage foreclosure. Always check HOA balance before bidding.HUD HomeA property formerly secured by an FHA-insured mortgage that went to foreclosure — now owned and sold by the Department of Housing and Urban Development via HUDHomeStore.gov.IRS Tax LienA federal government lien for unpaid income taxes. IRS liens can survive a foreclosure if the IRS was not properly notified of the foreclosure action. Always run a federal tax lien search before bidding.Judicial ForeclosureA foreclosure process that requires a lawsuit filed in court before the property can be sold at auction. Florida is a judicial foreclosure state — the process typically takes 12-24 months.Lis PendensLatin for 'suit pending.' A public notice recorded in the county clerk's office indicating that a foreclosure lawsuit has been filed affecting the title to a specific property. The first public signal of foreclosure.MAO (Maximum Allowable Offer)The highest price an investor can pay for a distressed property and still hit their profit target. Standard formula: (ARV × 0.70) − Rehab Costs. Also see: 70% Rule.Non-Judicial ForeclosureA foreclosure process that does not require court involvement — used in states like Texas, Georgia, and California. Florida is NOT a non-judicial state.REO (Real Estate Owned)Bank-owned property acquired by a lender when no one outbid their credit bid at the foreclosure auction. Banks are motivated sellers of REO due to carrying costs and regulatory pressure.ReceivershipA court-ordered arrangement where a neutral third party (receiver) is appointed to manage, protect, or dispose of property when the owner is unable or unwilling to do so — often related to business failure or fraud.Redemption PeriodFlorida allows a 10-day redemption period after the foreclosure sale during which the former owner can pay off the full judgment amount and reclaim their property.Short SaleA property sale where the lender agrees to accept less than the full outstanding mortgage balance as full satisfaction of the debt, allowing the owner to sell an underwater property.Stalking Horse BidIn a 363 bankruptcy auction, the initial qualified bid that establishes the floor price. The stalking horse bidder often receives a break-up fee if they are outbid at the auction.Summary JudgmentA court ruling in a foreclosure case in favor of the lender when there is no genuine dispute of material fact. After summary judgment, the court sets the auction date.Title SearchA review of public records to verify property ownership and identify all recorded liens, encumbrances, and defects in title. Essential before any distressed property purchase.Trustee SaleA sale conducted by the bankruptcy trustee of estate assets (including real property) under court supervision to generate cash for distribution to creditors.70% RuleThe investor heuristic that the maximum bid on a distressed property should be 70% of ARV minus rehab costs, targeting approximately 30% equity cushion on entry.