Accelerate—refers to an “acceleration clause” option, which may or may not be in your mortgage or deed of trust. Accelerate requires you to pay off the whole loan balance if the loan is in default.

Affidavit—this refers to a sworn statement, commonly given under oath and with the presence of a notary.

Appraisal—when your property is appraised, an authorized person will give you an estimate on the value of the property.

Appreciation—Means the amount of your house’s value has increased since your purchase.

Assignment—refers to the process of transferring the property to be held in trust, or could also be used for the lenders’ benefit.

Bid—Means the amount offered for a property that’s for sale at an auction.

Certificate of Sale—This is the document given to the winning bidder which indicates their rights to the property.

Clear Title—This shows that the title to the property isn’t burdened by defects.

Credit Bid—This refers to a bid placed on behalf of the mortgage lender at a foreclosure sale and should be the same as or less than the total balance of the defaulted loan.

Decree—Refers to an official judicial decision.

Deed—This is the document that permits the transfer of property ownership.

Deed-In-Lieu of Foreclosure-Means voluntarily conveying the property rights from the borrower to the lender.

Deed Of Trust—This refers to that 3-party security instrument between the mortgage lender, the borrower, and the trustee, which conveys the legal title to the property as security feature for loan repayment.

Default—This happens when a borrower fails to make a payment as agreed in the promissory note or contract. The mortgage or deed of trust is marked as default.

Deficiency Judgment—This term follows after the foreclosure sale and obligates the borrower to pay the entire balance of the loan.

Equitable Title—This refers to the right to possession of the property and the right to get hold of the legal title when a preceding condition has been met sufficiently.

Equity—this refers to the net value of an asset. When it comes to real estate, this means the difference
between the property’s current value and the mortgage amount on a property.

Escrow—the term means an item, documents, or money deposited to a 3rd party which will be delivered
once all conditions are fulfilled. For instance, the money paid as deposit by a borrower to a mortgage
lender to pay for insurance premiums and taxes when they are due, or the documents or deposit of
funds with an attorney or escrow agent that are disbursed following the sale of the property. In other
parts of the country, escrows are referred to as impounds or reserves.

Escrow Accounts—refers to a segregated trust account in which escrow funds are contained.

Escrow Analysis—means the examination of escrow accounts to determine whether or not the current
monthly deposits is sufficient enough to pay the insurance, taxes, and other bills.

Fair Market Value—refers to the value of a real estate property if sold on the open market.

Forbearance—this is term that describes the act of not taking legal action when a mortgage is in arrears.
Forbearance is commonly granted when the borrower makes an arrangement that is considered
satisfactory to pay the whole amount owed at a later date.

Foreclosure—means the enforced sale of a property pay off the debt owed once the mortgage it is in
default status.

Free And Clear—means owning property without any debt.

Hazard Insurance—refers to a form of insurance that compensates the insured in case of any damage or
property loss.

Investment Property—this term refers to a property other than the primary residence of a borrower.
Investment property is one that is bought to generate income from tax benefits, rental, or a profitable resale.

Investor—refers to a person (or can also be an institution) that invests money in mortgages or
mortgage-backed securities.

Judicial Foreclosure—a term used to describe the process by a court of law.

Landlord—refers to the owner of the real estate property that is leased or rented.

Lien—this term refers to a charge on a real or personal property to satisfy a debt.

Legal Description—means the formal description of the property which is sufficient enough to be
located by reference for recorded maps and/or government surveys.

Lender—refers to a bank, a mortgage company, et cetera, which lends money temporarily on the
condition that the borrower will repay the whole amount with interest.

Lender Placed Insurance—this refers to an insurance placed by a lender to protect the interest on collateral securing a loan.

Loan Servicer—also called a loan administrator, the term refers to a function of a mortgage bank which
encompasses the receipt of payments, escrow administration, customer service, collections, investor
accounting, and foreclosures.

Lis Pendens—describes a legally recorded notice which informs a borrower of a pending lawsuit.

Mortgage—refers to a written pledge of a real estate property designed for security for the whole repayment of a loan to the mortgage lender.

Non-Judicial Foreclosure—the term refers to the foreclosure process that is used when a mortgage or deed of trust contains a power of sale clause wherein the borrower pre-authorizes the property’s sale to pay off the balance on a loan in case of default.

Notary—refers to a public officer who is licensed to certify the validity of a person’s signature.

Notice of Trustee Sale—this is a notice that offers specific information concerning a loan in default as well as future procedures that will take place. A notice of trustee sale is required to be documented in the county where the real estate property is situated, and advertised in a security document as dictated by the state law.

Partial Claim or Partial Release—this refers to a buyer who may qualify for a low interest or interest-free loan to bring the loan current if he or she has insured the mortgage, usually through the Federal Housing Administration. The loan will be repaid at a later date when the borrower pays off the first mortgage or sell the property.

Personal Property—means temporary or movable property.

Posting—means the publishing, advertising or announcing by attaching a notice to a certain object.

Postponement—this term means to announce or give notices of a new date of the foreclosure.

Pre-Foreclosure Sale or Short Sale—refers to an option which involves selling the property to prevent foreclosure. A mortgage lender may agree to accept lesser amount than what is originally loaned on the property if a borrower owes more than the home’s value. A borrower must speak with a tax preparer to learn more about possible tax consequences when doing a short sale or pre-foreclosure sale.

Right of Redemption—this refers to the right of the borrower to reacquire his former property which was lost due to foreclosure.

Reinstatement—refers to a total sum paid on a certain date which covers the whole amount owed in addition to past due monthly payments and fees.

Repayment Plan—the term describes an arrangement in which a borrower agrees to give additional payments in order to reduce past due amounts while still continuing to make the regular scheduled payments.

Request for Notice—refers to a legally recorded document that requires a trustee to give a copy of the Notice of Sale or Notice of Default about a specific deed of trust which is in foreclosure to the party who filed the document.

Subject To—this term is used to refer to purchasing property which has existing lien on the property’s title without assuming personal liability for paying those liens.

Title—also commonly known as a deed, this term serves as an evidence of a person’s legal right in the real estate property.

Trustee—refers to a neutral party that announces or advertises the sale of a foreclosed property. A trustee also conducts the auction to sell the property to the highest bidder.

Trustee Sale—means an auction of the property by a trustee. The term is also known as sheriff’s sale.

Work-Out—also known as “restructure”, which means an alternative action other than foreclosure which benefits both lender and borrower. Work out options may comprise loan modification, short sale, among other forms of forbearance.

Upset Bid—describes a situation when a higher bid is placed on a real estate property after a foreclosure sale compare to the bid placed during an actual foreclosure sale.

Writ—refers to a written mandatory process which is issued in behalf of a judicial officer or court, in which the document commands the person concerned to do or not to do a specific action.

Source: www.hud.gov/offices/hsg/sfh/buying/glossary.cfm