Glossary

Bankruptcy: Is a legally declared inability of an individual to pay its creditors.

Deed in lieu of foreclosure: When the homeowner gives all interest in their home to the lender to satisfy a loan that is in default and avoid foreclosure proceedings.

Foreclosure: Is the legal and professional proceeding in which the lender, obtains a court ordered termination of the homeowners rights to stay in the home.

Notice of Default (NOD): Is a notification given to a homeowner stating that he or she has not made their payments by the predetermined deadline. It dictates that if the money owed (plus an additional legal fee) is not paid in a given time, the lender may choose to foreclose the homeowner’s property. Any other people whom may be affected by the foreclosure may also receive a copy of the notification.

REO (Real Estate Owned): Is property owned by a lender or a bank, after an unsuccessful sale at a foreclosure auction.

Short Sale: Is a sale of real estate in which the proceeds from the sale fall short of the balance owed on a loan secured by the property sold.