Foreclosure

Question 1

Deed in Lieu of Forclosure

Answer 1

A mutual agreement in which the borrower is released from liability under the terms of the loan in exchange for a quitclaim deed or a regular grant deed

Question 2

Forebearance

Answer 2

An agreement that effectively forestalls or delays foreclosure action

Question 3

Foreclosure

Answer 3

A procedure that removes an owner’s property rights; when real property is pledged as security for a loan, process of selling that property because borrower defaulted

Question 4

Grant Deed

Answer 4

Deed that contains two guarantees; grantor states that property has not been sold, and state the property is not burdened by encumbrances apart from those already disclosed to the buyer

Question 5

Loss Mitigation

Answer 5

Negotiation of mortgage terms between lender and borrower that prevent foreclosure

Question 6

Quitclaim Deed

Answer 6

A deed to relinquish any interest in property that the grantor may have, but implying no warranties

Question 7

Short Sale

Answer 7

A situation in which the lender agrees to accept a payoff-in-full amount less than the outstanding balance of the loan

Question 8

Affidavit of Completion of Forfeiture

Answer 8

A written statement recorded by a vendor that terminates a buyer’s interest when the buyer defaults on a land contract

Question 9

Certificate of Sale

Answer 9

A document issued to the highest bidder at a judicial foreclosure sale

Question 10

Deficiency Judgment

Answer 10

A judgment against the defaulting mortgagor for the difference between the indebtedness and the sale price through a foreclosure sale

Question 11

Equity of Redemption Period

Answer 11

Right to redeem property during the foreclosure period

Question 12

Forcible Detainer Action

Answer 12

Expedites eviction of the borrower

Question 13

Forfeiture Clause

Answer 13

Loss of money or anything of value due to failure to perform under a contract

Question 14

Judicial Foreclosure

Answer 14

A foreclosure action taken through the filing of a lawsuit

Question 15

Land Contract

Answer 15

Also known as an agreement for sale or a contract for deed, it is an executory contract, in as much as the terms have not been fulfilled

Question 16

Lis Pendens

Answer 16

A recorded legal document that gives constructive notice that an action affecting a particular piece of property has been filed in a state or federal court

Question 17

Nonjudicial Foreclosure

Answer 17

The foreclosure and sale of property without resorting to court action

Question 18

Notice of Default

Answer 18

A notice that is recorded in the county recorder’s office stating that a trust deed is in default and that the holder has chosen to have the property sold

Question 19

Notice of Election to Forfeit

Answer 19

A notice recorded by the seller at the end of the reinstatement period of a breached land contract

Question 20

Notice of Reinstatement

Answer 20

A notice recorded by the seller if the buyer cures the default during the 20-day period after the filing of the notice of election to forfeit

Question 21

Period of Reinstatement

Answer 21

90-day period from the notice of default, during which a borrower may reinstate the loan secured by a deed of trust by making all back payments plus costs and bringing the loan current, but is not required to pay off the entire loan balance

Question 22

Power of Sale Clause

Answer 22

Clause in a deed of trust that allows the trustee to conduct a foreclosure sale without first going to court

Question 23

Reinstatement Period

Answer 23

A right available to anyone under an accelerated promissory note secure by a deed of trust or mortgage on property. Debtor has up to 3 months to pay off amount in arrears including all costs curing the default without additional penalty

Question 24

Sheriff’s Deed

Answer 24

After the statutory period of redemption, the successful bidder at a judicial foreclosure receives this deed and may take possession of the property

Question 25

Sheriff’s Sale

Answer 25

A sale ordered by the court in which a sheriff or county official has the legal right to sell a distressed or foreclosed property

Question 26

Statutory Period of Redemption

Answer 26

Period after the sale during which the landowner could redeem the property

Question 27

Trustee Deed

Answer 27

The deed issued by the trustee after the foreclosure and sale of property under a deed of trust