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Foreclosure terms


ABANDONMENT:  situation in which homeowner leaves house with no intention to return.
ACCELERATION CLAUSE:  clause in a mortgage that allows the lender to demand all money owed payable immediately in the event a specific event occurs. 
APPRAISAL: estimate of property's value made by a state licensed professional.
AS IS: seller does not warrant or guarantee the property and the buyer accepts the property in present condition.
BROKER PRICE OPINION (BPO): broker's estimate of property’s likely selling price, generally less than an appraisal but much more useful in pricing, being that it is a realistic current marketing price. 
BANKRUPTCY:  a legal proceeding that allows a debtor to discharge certain debts or obligations without paying the full amount or allows the debtor to reorganize themselves financially so they can fully repay their debt.
BREACH:  the failure without legal excuse to perform any promise made in a contract.
CLEAR TITLE:  rights to piece of property that aren't clouded by liens or other encumbrances.
CONVEYANCE: 
process of transferring title or some interest in real estate to a new owner.
DEFECIENCY: amount that a borrower owes to the lender if the foreclosure sale did not generate enough proceeds to pay the mortgage and foreclosure associated fees.
EXTENSION AGREEMENT:  an agreement giving extra time to meet an obligation.
EQUITABLE RIGHT OF REDEMTION:  the right of property owner to avoid foreclosure by paying the debt, interest, and costs.
EVICTION:  legal procedure to forcibly remove a tenant from dwelling.
FEDERAL TAX LIEN: an obligation to the United States government as result of not paying federal taxes.
FORECLOSURE:  legal procedure enforcing a creditor's rights when a debt secured by any lien on property is in default.
INVALID:  not legally binding.
JUNIOR LIEN:  a legal claim upon property subordinate to another claim on the same property.
LIMITED POWER OF ATTORNEY:  a recorded document which authorizes someone to act as attorney-in-fact in a specific manner for someone else.
LIS PENDENS:  a recorded notice of pending legal action, which notifies prospective purchases and encumbrances that a lawsuit is in progress that could affect title.
MECHANIC'S LIEN: claim on property that secures the cost of labor preformed on and materials provided for uncompensated improvements.
MORTGAGE LIEN: the right of lender to force the sale of mortgaged property if borrower fails to pay the loan as agreed.
NOTICE OF DEFAULT:
 a written document that gives notice of a borrowers failure to perform his obligation.
NOTICE OF RESCISSION:  a written document that cancels the effect of a notice of default.
PRIVATE MORTGAGE INSURANCE (PMI): insurance that protects a lender in the event borrower defaults on loan
PRORATIONS:  the allocation to buyer and/or seller of closing costs and credits related to the transfer of a property
QUIT CLAIM DEED:  conveys rights or interest in real estate
RECONVEYANCE: a recorded document which gives notice that the loan secured by the identified deed of trust has been paid in full.
RECOURSE:  claim against a prior owner of property or note
TAX SALE: property is sold after a period of nonpayment of taxes
WORKOUT:  borrower and lender come to mutual arrangement to avoid foreclosure 
WRIT OF POSSESSION:  document authorizing law officer to use force to remove tenant from property, and remove tenant's belongings from residence. 

Sloan Properties does not offer tax or legal advise. We are REALTORS® who represent sellers in the marketing and sale of their property.

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