GLOSSARY
Fight AZ Foreclosure
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7025 E. Greenway Parkway, Suite 450, Scottsdale, AZ 85254
Here are some commonly used terms when facing foreclosure or negotiating a short sale, deed-in-lieu of foreclosure or loan modification with your lender.
Borrower: This refers to the person who took the loan from the lender - and pledged the property which is subject to a foreclosure as security for the loan.
BPO (Broker Price Opinion): This is the lender's opinion of price, generally completed by a local real estate agent.
Default: A mortgage or deed of trust is said to be in default when the borrower fails to make the payments as agreed to in the original promissory note.
Deficiency: Money that a borrower who has lost real estate in foreclosure still owes to the lender because the foreclosure sale failed to generate enough money to pay off the loan. Frequently lenders acquire title to real estate at foreclosures and often only credit fair market value of property against balance due on the loan; any unpaid balance on loan after all just credits are applied generally is amount of deficiency. Many states limit or restrict deficiencies.
Fair Market Value: The price a property would sell for on the open market.
Junior Lienholders: These are also know as secondary or other lienholders. It refers to people who have a recorded lien against the property.
Lender: The person from whom the loan was taken - with the property being foreclosed being pledged as security. This could be a bank, a mortgage company – or in some cases, a contractor whose (substantial) payments have not been made.
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.
Notice of Sale: A notice giving specific information about the loan in default and the proceedings about to take place. This notice must be recorded with the county where property is located and advertised as stated in the security document or as dictated by state law.
REO (Real Estate Owned): A class of property owned by a lender, typically a bank, after an unsuccessful sale at a foreclosure auction.
Trustee Sale: An auction of real property conducted by a trustee. Also known as a Sheriff's Sale.
Borrower: This refers to the person who took the loan from the lender - and pledged the property which is subject to a foreclosure as security for the loan.
BPO (Broker Price Opinion): This is the lender's opinion of price, generally completed by a local real estate agent.
Default: A mortgage or deed of trust is said to be in default when the borrower fails to make the payments as agreed to in the original promissory note.
Deficiency: Money that a borrower who has lost real estate in foreclosure still owes to the lender because the foreclosure sale failed to generate enough money to pay off the loan. Frequently lenders acquire title to real estate at foreclosures and often only credit fair market value of property against balance due on the loan; any unpaid balance on loan after all just credits are applied generally is amount of deficiency. Many states limit or restrict deficiencies.
Fair Market Value: The price a property would sell for on the open market.
Junior Lienholders: These are also know as secondary or other lienholders. It refers to people who have a recorded lien against the property.
Lender: The person from whom the loan was taken - with the property being foreclosed being pledged as security. This could be a bank, a mortgage company – or in some cases, a contractor whose (substantial) payments have not been made.
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.
Notice of Sale: A notice giving specific information about the loan in default and the proceedings about to take place. This notice must be recorded with the county where property is located and advertised as stated in the security document or as dictated by state law.
REO (Real Estate Owned): A class of property owned by a lender, typically a bank, after an unsuccessful sale at a foreclosure auction.
Trustee Sale: An auction of real property conducted by a trustee. Also known as a Sheriff's Sale.