Foreclosure attorneys glossary

Short, plain-English definitions of the terms you'll meet when choosing a Foreclosure Attorneys provider in United States.

What are surplus funds in a foreclosure?: Surplus funds are the money left over after a foreclosure sale covers the outstanding mortgage debt, junior liens, and sale costs. The property owner, junior lienholders, and sometimes judgment creditors can claim these funds based on priority order.
What is a cure period?: A cure period is the window of time in which a borrower can make up missed mortgage payments and halt a foreclosure before it proceeds to sale or judgment.
What is a deed of trust?: A deed of trust is a three-party security document (borrower, lender, and trustee) that secures a real estate loan and allows the lender to foreclose without court involvement in many states.
What is a deficiency judgment?: A deficiency judgment is a court order that allows a lender to recover the difference between the foreclosed property's sale price and the borrower's remaining debt obligation.
What is a forbearance agreement?: A forbearance agreement is a temporary arrangement between a borrower and lender to pause, reduce, or delay mortgage payments for a set period, typically 3 to 12 months, without permanently altering the loan terms.
What is a lis pendens?: A lis pendens is a recorded notice that alerts the public to pending litigation involving a property's title or ownership rights.
What is a mortgage servicer?: A mortgage servicer is the company that collects monthly payments, maintains escrow accounts, and handles loan administration for the note holder or investor who owns the loan.
What is a notice of default?: A notice of default is a formal written notification from a lender or loan servicer to a borrower stating that the loan payment is overdue and initiating the foreclosure process if the delinquency is not cured within a specified period.
What is a notice of trustee's sale?: A legal notice announcing the date, time, and location of a non-judicial foreclosure auction, required to be posted and mailed to the borrower and other parties within specific statutory timeframes.
What is a power of sale clause?: A power of sale clause is a mortgage or deed of trust provision that authorizes a lender to sell the property at auction without filing a lawsuit or obtaining a court order if the borrower defaults.
What is a qualified written request?: A qualified written request is a formal letter a borrower sends to a mortgage servicer under the Real Estate Settlement Procedures Act (RESPA) to dispute billing errors, request loan information, or challenge payment application, triggering a mandatory response within specific timelines.
What is a relief from stay motion?: A relief from stay motion is a legal request filed by a lender in bankruptcy court asking permission to proceed with foreclosure despite the automatic stay that prohibits creditor collection efforts.
What is a right of redemption?: A right of redemption is a borrower's legal right to reclaim property by paying the full debt, accrued interest, and costs before or after a foreclosure sale occurs.
What is a trial period plan?: A trial period plan is a temporary phase where a borrower makes reduced or restructured payments for a set time to prove financial ability before a loan modification becomes permanent.
What is a writ of possession?: A writ of possession is a court order directing a sheriff or constable to remove occupants from a foreclosed property and place the new owner in possession.
What is an acceleration clause?: An acceleration clause is a provision in a mortgage contract that permits the lender to demand immediate payment of the entire outstanding loan balance if the borrower fails to meet payment obligations or other loan terms.
What is an automatic stay?: An automatic stay is a court injunction that immediately stops foreclosure proceedings, collection calls, lawsuits, and other creditor actions when a debtor files for bankruptcy.
What is dual tracking?: Dual tracking is the practice of a mortgage servicer initiating or continuing foreclosure proceedings while a borrower's application for loan modification or other loss mitigation relief is still under review.
What is foreclosure mediation?: Foreclosure mediation is a court- or state-run negotiation process that brings a borrower and loan servicer together with a neutral third party to discuss alternatives like loan modifications or short sales before a foreclosure sale takes place.
What is judicial foreclosure?: Judicial foreclosure is a foreclosure process in which the lender files a lawsuit against the borrower and obtains a court judgment before the property can be sold to satisfy the debt.
What is non-judicial foreclosure?: Non-judicial foreclosure is a process where a lender sells a mortgaged property through a trustee or other authorized party, using a power-of-sale clause in the mortgage or deed of trust, without filing a court case.
What is reinstatement in foreclosure?: Reinstatement is the act of bringing a delinquent mortgage loan current by paying all back payments, accrued interest, and fees before a foreclosure sale completes.
What is robo-signing?: Robo-signing is the automated signing of foreclosure documents in high volume without adequate verification of facts, accuracy, or authority by the person executing them.
What is standing in foreclosure law?: Standing in foreclosure law is the requirement that a foreclosing party must prove it owns or holds the promissory note and has the legal right to enforce it.