Vocabulary for Foreclosure Flashcards
(85 cards)
a debt that is not paid
Default
lender agrees to accept keys and deed in lieu of foreclosure; allows time to repay the lender; can occur in either mortgage or deed of trust foreclosures; friendly foreclosure
Deed in Lieu of Foreclosure
lender allows borrower to hold off payment until they can make the payment; might be used if someone just lost their job and is looking for another; can occur in either foreclosure types
Moratorium or forebearance
a soldier cannot be foreclosed upon while being deployed; can occur in both mortgage and deed of trust foreclosures
Soldiers and Sailor’s Act
the lender’s right to call the entire loan all due and payable; the minute you are late on a payment, you owe everything at once and this notice is given
Acceleration
a deed in lieu of foreclosure is provided, bankruptcy is filed or the property is sold and proceeds pay off the debt
Ways to stop acceleration
a lawsuit is filed in court within 90 days of notice of acceleration
Court Foreclosure Action
the waiting period between filing suit and a court date
Equitable period of redemption
once there is a judgment, this is issued authorizing a sheriff’s sale
Writ of Execution
once sold at auction, the purchaser receives this and i now the lien holder but not the owner
Certificate of Sale
a 6 month period mandated by law where mortgagor can attempt to redeem the property with a lump sum payment; during this time mortgagor may live in the property
Statutory Period of Redemption
a 30 day period where the mortgagor never lives on the property; if tis happens, the statutory period of redemption begins again
Abandonment
a deed that is issued after the statutory period of redemption is completed and redemption is not made
Sheriff’s deed
extra money after the loan, interest, taxes and attachments are paid
Excess Monies
if this occurs, a lender can go after anything in order to recoup its losses (only in certain circumstances) and not on single family residential or duplexes, or properties under 2.5 acres
Deficiency or Lender’s Loss
non-judicial foreclosure
Deed of Trust Foreclosure
judicial foreclosure
Mortgage Foreclosure
following default on a loan, this notice is provided to the trustee that a default has occurred and to begin foreclosure proceedings
Beneficiary’s Notice
the trustee initiates foreclosure proceedings under this clause of the deed of trust
Power of Sale
the trustee gives constructive notice by signing and recording this notice
Notice of Sale
the period between recording the default and the trustee sale, this 90 day period begins where the trustor can get the debt paid; constructive notice and actual notice must be given and the trustees sale can then occur after 90 days
90- Day Reinstatement Period
property is auctioned off to the highest bidder who is awarded the trustee’s deed and instant ownership; all cash must be paid by 5:00 the following day
Trustee’s Sale
seller “takes bac” the note or part of the note for part of the purchase price
Carryback
vendor (seller) extends credit to vendee, permitting buyer to make normal down payment and pay the balance in installments; buyer (vendee) has possession an equitable title ($ they put in and future interest) while seller has legal title; AKA Land Contract
Agreement for Sale AKA Land Contract
