Foreclosure Dictionary: Part I
We understand that foreclosures are a difficult process to go through. At Yardley Law we are experienced in defending homeowners and revealing to them their options when it comes to foreclosing on their house. There are dozens of terms you’ll come across while enduring this lengthy process. To familiarize you with a few of these terms and definitions here is the first of a two-part glossary series.
Amortization. Paying off a loan with regular payments over a set period. Part of each payment is applied to principal and to interest.
Arrears. Overdue payments on a loan. With a mortgage, this may include any missed payments, interest on the missed payments, and the costs incurred by the lender in trying to collect the debt.
Creditor. A person or institution to whom money is owed.
Debtor. Someone who owes money to another person or business.
Deed in lieu of foreclosure. An arrangement under which homeowners can get out from under a mortgage and prevent a foreclosure, by signing the deed to their home over to the lender in exchange for the lender’s agreement to not hold the homeowner liable for the remaining amount of the mortgage.
Foreclosure. The legal process by which a creditor with a claim (lien) on real estate forces a sale of the property in order to collect on the lien. Foreclosure typically occurs when a homeowner defaults on a mortgage.
Strict foreclosure. A type of judicial foreclosure used in several states in which the court not only orders that the foreclosure take place, but also transfers title to the foreclosing party without requiring the property to be put up for sale at an auction.
We hope that this short list of definitions is helpful in clearing up terms you’ve encountered while going through the foreclosure process. If you have any questions, please don’t hesitate to call us at Yardley Law today. We are well equipped to defend your rights, and ease your anxieties, while going through a foreclosure.