Short Sale & Foreclosure Glossary


Foreclosure - is a legal proceess by which a defaulted Borrower is deprived of his/her interest in a mortgaged property.

Short Sale - The sale of a home which is completed through negotiation in which the lender agrees to accept less than the full amount owed allowing the debt to be ‘paid off’, (short).

Forbearance Agreement - an agreement between a mortgage holder and a borrower that lays out a specific loan payment plan and stops the foreclosure action so long as the borrower meets the terms of the agreement.  A Forbearance Agreement is a way for the borrower to keep the property and.

Junior Lien  - A lien, usually a mortgage loan, that is subordinate to a Senior Lien, usually a first mortgage. Lien priority is generally established by order of recordation .

Notice Of Default(NOD) -A lien, usually a mortgage loan, that is subordinate to a Senior Lien, usually a first mortgage. Lien priority is generally established by order of recordation . NOTE: if you refinance a 1st mortgage on a property with a 2nd mortgage already in place the new 1st mortgage holder will require a subordination agreement from Junior Lien holders to legally establish the new mortgage holder as 1st or Senior Position.

Real Estate Owned (REO) - Short for Real Estate Owned. When a mortgage lender acquires a property.

Statutory Redemtion - The right of the borrower to recover a property after foreclosure sale.

A Deed In Lieu Of Foreclosure - is when you deed your property to the lender in exchange for forgivness of the entire amount of the mortgage.

Deed For Lease (D4L) - The Deed for Lease program lets homeowners transfer the deed back to their lender and then sign a lease to remain in the home.

 

 

Important Links

Home Steps - Freddie Mac Homes

California Foreclosure Laws

U.S. Department Of Housing and Urban Development (HUD)

Making Home Affordable

HAMP - Home Affordability Modification Program

Home Affordable Foreclosure Alternatives

NACA - Neighborhood Assistance Corporation of America

 

 

Heather Farquhar And Todd Riley 4061 Laurel Canyon Studio City, CA 91604 Phone: 818-388-2743 Mobile: 818-730-4393 Email Heather Farquhar