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Accelerate: This term frequently refers to an acceleration clause option that may or may not be in your mortgage or deed of trust and it requires if the loan is in default, you to pay the entire loan balance.
Affidavit: This is a statement that is sworn to be true that is normally given in the presence of a notary and under oath.
Appraisal: An authorized or licensed person will appraise your home and provide you with an estimate on the value of your home.
Appreciation: This is the amount of value that a home has increased since it was bought.
Assignment: This is the process of transferring property that is to be used for the benefit of the lenders or held in trust.
Bid: The amount of money that is offered for a property that is for sale at an auction.
Certificate of Sale: This document is provided to the winning bidder at a foreclosure sale and provides their rights to the property.
Clear Title: This indicates that the title to the property isn’t burdened by any defects.
Credit Bid: A credit bid refers to a bid that is placed on the behalf of a lender at a foreclosure sale and must be less that or the same as the defaulted loan balance.
Decree: An official judicial decision.
Deed: A document that permits the transfer of property ownership from one party to another.
Deed In Lieu Of Foreclosure: This document voluntarily conveys the rights of a property from the borrower to the lender.
Deed of Trust: This is a three party security document between the trustee, the lender, and the borrower that conveys the legal title to the property as security for loan repayment.
Default: This refers to when a borrow fails to make a payment as originally agreed in the promissory note, the deed of trust or mortgage is in default.
Deficiency Judgment: This requires the borrower to pay the remaining balance of the loan and follows a foreclosure sale.
Equitable Title: The right to obtain the legal title and possession if a preceding condition has been sufficiently met.
Equity: The net worth of an asset. In real estate terms it is the difference between the property’s current value and the amount mortgaged.
Escrow: Documents, money, or an item that is deposited with a third party and that are to be delivered once a certain condition is fulfilled.
Escrow Accounts: A segregated trust account where the escrow funds are held.
Escrow Analysis: This is the occasional examination of escrow accounts in order to determine if the current monthly deposits will be enough to pay the insurance, taxes and any other bills when they are due.
Fair Market Value: This is the value of a property if it were to be sold on the open market.
Forbearance: The act of not taking legal action even though a mortgage is in arrears.
Foreclosure: The forced sale of a property to repay the debt owed on it once it is in default status.
Free and Clear: Owning a property without having any debt on the property.
Hazard Insurance: This is a form of insurance that compensates the insured in case of property loss or damage.
Investment Property: A property other than the borrower’s primary residence, which is bought to generate income from profitable resale, tax benefits, or rental.
Investor: An institution or person who invests in mortgage backed securities or a mortgage.
Judicial Foreclosure: A court action process that is determined by a court of law.
Landlord: The owner of the property which is rented or leased to a business or person known as the renter, lessee, or the tenant.
Lien: The charge on real or personal property for the purpose of satisfying a debt.
Legal Description: A formal description of the property that is sufficiently adequate for it to be located by reference to approved recorded government surveys/maps.
Lender: A mortgage company, bank, or person who loans money temporarily on the condition that it is to be repaid with interest.
Lender Placed Insurance: Insurance that is placed on a property by a lender to protect their insurable interest on collateral that is securing a loan.
Loan Servicer: A function of a mortgage bank that includes foreclosures, collections, investor accounting, escrow administration, customer service, and the receipt of payments.
Lis Pendens: This is a notice that is legally recorded which informs all interested parties of a lawsuit that is pending.
Mortgage: This is a written pledge of property that is used for security for the repayment of a loan to the lender.
Non Judicial Foreclosure: This type of foreclosure process is used when a deed of trust or mortgage includes a power of sale clause by which the borrower preauthorizes the sale of the property to pay the balance on a loan in case of default.
Notary: A public officer who is licensed in their state to witness and certify the validity of another person’s signature.
Notice of Trustee Sale: This notice provides specific information regarding a loan in default and what the future procedures are that are about to happen.
Partial Claim or Partial Release: A person might qualify for a low interest or even an interest free loan to bring the loan current if it has been insured with the mortgage company.
Personal Property: This is defined as movable or temporary property.
Posting: This is advertising, announcing, or publishing by physically attaching a notice to an object.
Postponement: In foreclosure sales, a postponement means to post notices or announce at the original sale the new time and date of the foreclosure.
Pre Foreclosure Sale or Short Sale: This is an option that involves the selling of the home to prevent foreclosure.
Right of Redemption: The right of the borrower to reacquire a property that was lost due to a foreclosure.
Reinstatement: This refers to a lump sum that is paid on a specific date which covers the full amount owed in addition to any past due monthly fees and payments.
Repayment Plan: With this type of arrangement, a borrower agrees to continue to make regularly scheduled payments while making additional payments in order to reduce past amounts due.
Request for Notice: This is a document that is legally recorded and requires a trustee to send a copy of the Notice of Sale or Notice of Default about a particular deed of trust that is in foreclosure to the party or person who filed the document.
Subject To: Buying property that has an existing lien on the title without assuming any personal liability for having to pay for those liens.
Title: Frequently referred to as a deed, it is the title is evidence of a person’s right to real property.
Trustee: A neutral party who conducts the auction in order to sell it to the highest bidder and advertises the sale of a foreclosure property.
Trustee Sale: The auction of real property by a trustee.
Work Out: This is also known as a restructure and is an alternative action to foreclosure that is beneficial to both borrower and the lender.
Upset Bid: This refers to a higher bid that is placed on a property after a foreclosure sale than the one that was placed during the actual foreclosure sale.
Writ: This is a mandatory written process which is issued in the name of the court or a judicial officer who commands the person it is intended for to do or to refrain from doing a specific act.
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