Foreclosure Dictionary: Part 2
The list of unfamiliar terms you’ll encounter during a foreclosure proceeding is long and tenuous. In a previous blog we provided a short glossary of terms to introduce you to common phrases you’ll hear in the courtroom and read in documents. As your trusted law firm, Yardley Law wants to make sure you are comfortable and understand the foreclosure process. To clear further confusion, here are a few more terms you may want to become familiar with.
Administrative expenses. In a Chapter 13 bankruptcy repayment plan, the debtor must pay in full the trustee, attorney and other costs. Administrative costs are typically 10% of total payments under the plan.
Collateral. Property pledged by a borrower as security for a loan.
Debtor. A person who owes money to another person or business. Also, the term used to refer to anyone who files for bankruptcy.
Default. Failing to meet the requirements of an agreement. A default can be failure to pay the mortgage, keep the necessary insurance or to maintain the property.
Automatic stay. An automatic stay prohibits most creditor collection activities.
Motion to lift stay. A formal request by the creditor to the bankruptcy court for permission to continue a court action or collection activities in spite of the automatic stay.
We hope that the understanding of these terms is useful to you as you go through this often-stressful process. Thomas Yardley has defended and represented many clients in foreclosure proceedings. He is an experienced attorney who will ensure you’re comfortable and familiar with your case every step of the way. If you find yourself in over your head in a foreclosure case, call Yardley Law today.