The documents or terms listed below are document types common during the foreclosure process. Get to know them and share them with your sellers that have property that ares in the pre-foreclosure process.

Notice of Default: (NOD, ND) A publicly recorded notice that a property owner has missed scheduled loan payments for a loan secured by a property.  Some states require lenders to record a notice of default to begin the foreclosure process.

Trustee's Sale: (NOT, NT) A document announcing the public sale of a property to recover a debt owned by the owner of the property.  The notice is mailed to parties affected by the sale of a property, advertised in local publication and recorded in public records.  Among other information, it provides the date, time and location of the sale.

Lis Pendens: (LP,LIS)A publicly recorded notice of a pending lawsuit against a property owner that may affect the ownership of a property.  Some states require lenders to file a lis pendens to begin the foreclosure process if a borrowers is in default on loan payments.

Release of Lis Pendens: (RL) Release of the above.

REO/Tenancy by Entireties: (TE) This is the end of the process.  Real Estate Owned by the lender, this status indicates the property is now owned by the lender, bank or investor as a result of a foreclosure.

Beneficiary: Second party to a Trust Deed, the maker of the loan secured by the property and documented with a Trust Deed.

Deficiency Judgement:A judgment given when the security pledged for a loan does not staisfy the debt upon its default.

Deed in Lieu of Foreclosure:A deed to real property accepted by a lender from a defaulting borrower to avoid the necssity of foreclosure proceedings by the lender.

Forebearance Agreement:Where lenders will let borrowers cease payments due to a job loss or emergency and make up past payments at the end of the loan.  Others will allow graduated payments, drop the interest rate, change the loan to an adjustable rate, frop mortgage insurance payments.

Right of Redmption:  The period after the foreclosure during which the homeowner can redeem the property.

Short Sale:  A term used to describe a real property sale where the total sales proceeds are less than the total balance due against the property, including the costs of sales.

Trust Deed:A contract by which property is made security for the payment ofa debt or obligation without a secure performance of an obligation.

Trustee Deed: Document conveying ownership of property to highest bidder at a Trustee Sale.

Trustee Sale: The file number for the property in default.

Trustor:  One of three parties to a Trust Deed; the borrower or maker of a promissory note.

CALL TO ACTION:Please add to this list, if there are other terms that are a part of the pre-foreclosure proceedings.