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FORECLOSURE & SHORT SALE VOCABULARY ADVERTISING- A copy of the Notice of Trustee Sale must be published once a week for three weeks. APPRAISAL- Real estate appraisal or property valuation is the practice of developing an opinion of the value of real property, usually its Market Value. ASSET MANAGEMENT COMPANY They provide complete property management and marketing from the date of initial assignment of the asset through close of escrow/confirmation of funds. BENEFICIARY- The beneficiary in a foreclosure context is generally the mortgage lender. Frequently referred to as the "Benny". BPO Broker Price Opinion, Real estate brokers are given an order to do a BPO by the lender, mortgage company or loss mitigation company. The broker does either a Drive By BPO or an Internal BPO in most cases.
DEED IN LIEU OF FORECLOSURE A potential option taken by a borrower to avoid foreclosure under which the owner deeds the collateral property back to the lender in exchange for the release of all obligations under the mortgage. DISCOUNTED PAYOFF- The payoff of a mortgage loan where the lender accepts an amount less than the actual amount owed to payoff the loan. EQUITY DEFICIENT- A property is equity deficient when, if sold, sales proceeds would not fully pay off existing mortgage debt.
FORECLOSURE-A legal procedure whereby property used as security for a debt is sold to satisfy the debt in the event of default in payment of the mortgage note or default of other terms in the mortgage document. HARDSHIP LETTER-letter written by the seller describing the seller’s circumstances. HOME EQUITY LOAN-A line of credit made against the equity in the borrower’s home. It is secured by a second open-end mortgage on the home.
LOAN MODIFICATION- A Loan Modification is a permanent change in one or more of the terms of a mortgagor's loan, allows the loan to be reinstated, and results in a payment the mortgagor can afford. LOSS MITIGATION- a process to avoid foreclosure; the lender tries to help a borrower who has been unable to make loan payments and is in danger of defaulting on his or her loan NOTICE OF DEFAULT (NOD)- An official notice filed and recorded by a designated trustee at the request of a lender indicating lender has commenced foreclosure action. POSTPONEMENT- Trustee sales may be postponed by the first at the direction of the lien holder. Notice may be given in advance or at the time and location specified for the intended sale. PRIVATE MORTGAGE INSURANCE (PMI) –A policy of insurance paid for by the borrower to protect the lender in the event the borrower defaults on the mortgage. Typically PMI is required by the mortgage holder when the down payment is less than 20% of the purchase price. PROMISSORY NOTE- A document signed by a borrower promising to repay a loan under agreed-upon terms. QUALIFYING FUNDS- In order to bid at a trustee sale bidder must have qualifying funds available at the sale. Qualifying funds are cash or a cashiers check drawn by a state or National bank. REINSTATEMENT- To bring the loan current. Borrower may reinstate up to five business days before foreclosure sale. This content can be found on the following page:
STATED INCOME LOANS- A stated income loan is a type of low-documentation loan. Your lender asks how much you make, you throw out a number, and they run with it. WORK OUT DEPARTMENT-A department of a lender that assist a mortgagor in default to work out a payment plan rather than proceed directly with a foreclosure. Some possible workout plans could include extending the loan term, accruing interest or reducing the interest rate. |