Foreclosure Terminology

A foreclosure “trustee” is the party who typically handles a nonjudicial foreclosure.

The terms of the mortgage or deed of trust you signed when getting your home loan usually define what constitutes default.

“Loss mitigation” is what the mortgage-servicing industry calls the process where borrowers and their loan servicer work together to avoid a foreclosure.

If you have a power of sale provision in your loan contract, the lender can foreclose without going to court.

An REO (Real Estate Owned) property is a home the bank owns after a foreclosure or deed in lieu.

"Securitization" is a process that takes individual mortgage loans, bundles them, and turns them into marketable mortgage-backed securities that can be bought and sold.

An acceleration clause in a mortgage allows the lender to demand full repayment if you default on the loan.

If you respond to a foreclosure lawsuit, but don’t bring up any valid issues, the foreclosing party will likely ask the court for summary judgment.

Foreclosure sales (sheriff's sales and trustee's sales) are a critical part of the foreclosure process, offering lenders a way to recover unpaid debts by auctioning off properties.

HUD-approved housing counselors will work with you, free of charge, to help you avoid foreclosure.

If you don’t respond to a foreclosure lawsuit, the lender will ask the court for a default judgment.

If you lose your home to a foreclosure sale, the new owner might offer you a lump sum to voluntarily move out. This kind of transaction is called “cash for keys.”

If you're facing a foreclosure, you might get a breach letter or a FDCPA validation letter. Learn the difference between the two.

Learn about the complaint, summons, and lis pendens in a foreclosure lawsuit.

If you fall behind in your mortgage payments, your lender may order monthly property inspections to ensure that its interest in the property is protected. This is different than the home inspection that was completed when you purchased the property. Keep reading to learn the difference between a home

In a nonjudicial foreclosure, you might get both a notice of default and notice of sale. Learn more about these documents.

Loan reinstatement and payoff are two ways to stop a foreclosure. Compare their costs, benefits, and challenges.

How long is the preforeclosure process, and how does it work? It depends on state law and other factors.

The terms of the mortgage or deed of trust you signed when getting your home loan usually define what constitutes default.

Mortgage servicing companies handle borrowers' accounts. Find out if you can change your mortgage loan servicer.

Qualified written requests can be a helpful tool for borrowers in foreclosure.

"Securitization" is a process that takes individual mortgage loans, bundles them, and turns them into marketable mortgage-backed securities that can be bought and sold.

MERS registers and tracks assignments of mortgages and servicing rights, avoiding the costs of having to record each loan transfer.

Fannie Mae and Freddie Mac are government-sponsored enterprises that buy mortgage loans from banks and other lenders.

At a foreclosure sale, the foreclosing lender usually makes a bid on the property using what’s called a “credit bid.”