If you are facing difficulties with your mortgage loan, here are a few terms you will want to be familiar with.
Deed in Lieu - a deed in which the borrower conveys all interest in the real property to the lender to satisfy a loan that is in default.
Default - the failure of a borrower to make a mortgage payment when due or to fulfill other terms of the loan agtreement. A "Notice of Default" is filed in California when a borrower is behind in payments; once filed the borrower has 3 months in which to "reinstate" or bring their loan current.
Delinquency - the loan is at least one month overdue however the lender has not yet declared it to be in default.
Deficiency Judgment - is a personal judgment lien against a borrower whose foreclosure sale did not produce sufficient funds to pay the mortgage in full. This option may or may not be available to the lender, depending on whether they have made a recourse or nonrecourse loan. The judgment is against any person who is liable for the mortgage debt.
Due on Sale Clause - a clause in a mortgage that provides for the lender to demand payment in full of the outstanding balance on a loan when the property is sold.
Forbearance - a special agreement between the lender and the borrower to delay foreclosure proceedings. According to this agreement, the lender delays his right to exercise foreclosure if the borrower could catch-up his payment schedule in a certain amount of time.
Foreclosure - a legal procedure allowing a creditor (lender) to sell property that is mortgaged as security because of a defaulted loan and then allows the creditor to take possession.
Foreclosure auction - when a creditor (lender) auctions a foreclosed property.
Loss Mitigation - a division within a bank that mitigates the loss of the bank.
Short Sale - a process where the borrower or homeowner is allowed to sell their property for an amount less than what is owed in order to avoid foreclosure and preserve their credit rating.
For more information on Short Sale procedures and answers to your questions -
Who Is Eligible for a Short Sale
Are there any Credit Consequences to a Short Sale?
Your Monthly Payments and a Short Sale
Short Sales - How Long Does the Process Take?
What can a short sale do for you?
- Help preserve your credit standing
- Allow you to sell your home with no out of pocket expenses
- May help reduce tax liability
- Help to releive your financial and emotional stress
- Avoid potential foreclosure
If you are facing difficulties with your mortgage, you need to KNOW YOUR OPTIONS! Call The Mode & DurhaM Team today for a private no-obligation consultation at (916) 230-0371 or visit our website at www.ElkGroveShortSale.com.
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Lori Mode & Bruce Durham, Keller Williams Realty, Elk Grove
www.ElkGroveShortSale.com
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