Glossary

Bankruptcy:

A legal process by which individuals or businesses that cannot pay their debts can seek the assistance of the court in getting a fresh start. There are different types or "chapters" of bankruptcy including Chapter 7, Chapter 11 and Chapter 13. Special bankruptcy judges preside over these proceedings.

Deed-in-lieu:

Avoiding foreclosure , an agreement to give the mortgaged property to a lender as an alternative to foreclosure

Deed:

A legal document transferring ownership of property

Default:

The inability to pay monthly mortgage payments in a timely manner or to otherwise meet the mortgage terms.

Deficient :

Incomplete; defective; not sufficient in quantity or force

Delinquency:

Failure of a borrower to make timely mortgage payments under a loan agreement.

Forbearance:

An intentional delay in collecting a debt or demanding performance on a contract, usually for a specific period of time. Forbearance is often consideration for a promise by the debtor to pay an added amount.

Foreclosure:

Foreclosure- A legal process in which mortgaged property is sold to pay the loan when the borrower defaults.

Judgment:

A legal decision; when requiring debt repayment, a judgment may include a property lien that secures the creditor's claim by providing a collateral source

Lien:

A legal claim against property that must be satisfied When the property is sold

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

Mitigation:

A reduction, abatement, or diminution of a penalty or punishment imposed by law.

Mortgage:

A lien on the property that secures the Promise to repay a loan.

Pre-foreclosure sale:

Allows a defaulting borrower to sell the mortgaged property to satisfy the loan and avoid foreclosure.

Trustee:

A person responsible for managing a trust and administering assets as dictated