Accelerate
Adjustable-Rate Mortgage (ARM)
Annual Percentage Rate (APR)
Appraisal
BPO
BPO stands for “Broker’s Price Option” and is a special short sale appraisal. It is similar to a standard appraisal, but usually cost less. In a BPO, lenders hire a real estate broker to give their opinion on the value of a property. This opinion of market value is usually based on the comparison of three similar properties that have sold recently, and the appraisal is adjusted upwards or downward based on the condition of the property being appraised.
Certificate of Sale
Credit History
Credit Rating
Deed of Trust
Default
Deficiency Judgment
Delinquent
Fair Market Value
Fixed-Rate Mortgage
Foreclosure
Housing and Urban Development (HUD)
Judicial Sale
In a judicial sale (available in every state), the lender files suit with the court system and the court demands payment from the owner, who usually has 30 days to make payment. If payment is not received, the lender can request that the property be auctioned, and the auction usually takes place several months after the request is filed. Once the home is sold, the owner is issued an eviction notice by the sheriff’s office and the property must be vacated.
Lien
Modification
Notice of Acceleration
PITI
Power of Sale
In a power of sale (allowed in most states), after the lender demands payment and does not receive it within a predetermined time, they are legally allowed to draw up a deed of trust that temporarily transfers property ownership to a trustee. The trustee then auctions the house on the lender’s behalf after the lender posts a notice of public auction (usually required by law). The eviction proceeds as in a judicial sale.
Private Mortgage Insurance (PMI)
Mortgage Debt Relief Act of 2007
The Mortgage Debt Relief Act was passed in 2007 and applies to debt forgiven between 2007 and 2012. In cases where a 1099-A or 1099-C is issued, the homeowner is generally not responsible for paying taxes on the amount of cancelled debt because the Debt Relief Act allows taxpayers to exclude income from discharge of debt on their principle residence.
Real Estate Owned (REO)
Redemption Period
Refinancing
Repayment Plan
Trustee Sale (also known as a “Sheriff’s Sale”)
Short Sale
Variable Rate Mortgage
Variable Interest Rate