February 15, 2009
Deed in lieu of foreclosure: An arrangement that allows the homeowner to turn over the deed of the house, stopping the foreclosure process and canceling the mortgage debt.
Forbearance: A suspension in payments allowed by the lender for a period usually no longer than a few months. The payments have to be made up later.
Foreclosure: The legal process by which a creditor with a claim on real estate forces a sale of the property.
Modification: A change in the mortgage to ease the payments, often by temporarily reducing the interest rate.
Nonjudicial foreclosure: A foreclosure done without court proceedings. Almost all foreclosures in California are of this type.
Notice of default: A legal notice from the lender giving the homeowner three months to make up past payments.
Reinstating a mortgage: Bringing a mortgage back on track by taking care of past payments, plus late fees and interest.
Repayment plan: Usually, a plan that allows the homeowner to make up missed payments over time.
Short sale: An arrangement in which the homeowner gets out from under a mortgage by selling the home for less than is owed on the mortgage. The lender accepts the amount, and the mortgage is canceled.
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