| When a homeowner is facing foreclosure, they are | | | | imminent, property owners have the option to hand |
| bound to hear lots of words that are quite difficult to | | | | their deed over to the lender instead of going |
| comprehend. A big reason for this is that foreclosure | | | | through the process. In order for the deeding to be |
| real estate has its own language thanks in part to | | | | certified, the lender needs to be approved. |
| legislation and law. With no background in this area, | | | | Default - This is when the borrower fails to make |
| real estate investors are unable to get through the | | | | payments to the lender; this could mean missing a |
| easiest foreclosure contracts. If you want to be a | | | | payment without further problems or too many |
| real estate investor, it's necessary to learn the | | | | payments that result in a unsuccessful mortgage. |
| foreclosure-related terms. | | | | Equity Rights Of Redemption - The borrower's rights |
| 14 Foreclosure-Related Words and Their Definitions | | | | to eliminate all burdens that are related to the |
| That Explain The Foreclosure Process | | | | mortgage, in an attempt to circumvent foreclosure. |
| Abandonment - A homeowner (property owner) | | | | Federal Housing Administration - The FHA is a part of |
| who has decided to give up rights to the property | | | | the Housing and Urban Development; this federal |
| without any coercion and fails to retrieve the rights | | | | agency is in charge for setting trade standards for all |
| or pass those rights to someone else. A situation | | | | mortgage loans given by private lenders. The FHA will |
| where a property is unused is not considered | | | | also insure all mortgages; foreclosure investors will |
| abandon. | | | | often deal with the FHA. |
| Acceleration Clause - This is a clause that is often | | | | Federal National Mortgage Association - commonly |
| seen in mortgage contracts that allows the lender | | | | named Fannie Mae; this is the federal agency that |
| the option to demand full reimbursement right away | | | | oversees the conventional housing mortgages and will |
| instead of at the end of contracted term. It must be | | | | often purchase loans that follow its government rules. |
| stated when this will happen including default on | | | | Several foreclosure investments will require investors |
| regular payments, the sale of property or property | | | | to have direct communication with the agency. |
| rights re-assignment. Debtors are usually told within a | | | | HUD1 Statement - This is a form required by the US |
| reasonable amount of time with a chance to reverse | | | | Department of Housing and Urban Development that |
| this. A contract without this clause means the debtor | | | | specifies what the costs are for obtaining a |
| is immune from any acceleration. | | | | foreclosed home. |
| Chattel: This is personal property that includes | | | | Loan TO Value Ratio - This is a comparison between |
| household items. | | | | the actual loan amount and the sale price/appraised |
| Closing Costs - Closing costs are expenses unrelated | | | | value. |
| to marketing and selling of property; these costs are | | | | Notice of Rescission: Lenders will use this notice to let |
| seen in loan and paperwork fees. Foreclosures tend | | | | the borrowers know that they are in good standing |
| to involve fees for legal and escrow. | | | | and any payment deficiencies are corrected. |
| Deed In Lieu Of Foreclosure - When foreclosure is | | | | |