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11 Cards in this Set
- Front
- Back
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Foreclosure
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The process by which a home owner looses the home due to non payment of mortgage,violatingthe due on sale clause,failing to pay taxes/or Mortgage insurance, failing to maintain the home or by violating any other term/condition of the mortgage and or note.
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Loss Mitigation
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The process by which the loan servicer attempts to rectify the past due mortgage payments.
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Advance Claim
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In conventional mortgages_insured with private mortgage insurance the PMI company can advance the money needed to bring the payment current.
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Deed in Lieu of Foreclosure
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In this option the deed is transferred to the lender in exchange for canceling mortgage debt.
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Forebearance
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The lender cvan allow a moratorium from payments, schedule a time frame of payments and then structure an advancement of claim or partial claim to catch up the past due amount.
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Modification
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This option requires changing the term of the loan by reducing the intrest rate or extending the loan terms.
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Notice of Intent
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A legal document, sent by certified mail or hand delivered, that indicates the lenders intention to proceed with foreclosure or sheriff sale.
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Reinstatement
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All past due amounts are caught up and the loan is once again being paid by the terms of the agreement.
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Modification
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This option requries changing the terms of the loan by reducing the interest rate or extending the loan terms.
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Partial Claim
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Used in the same manner as an advancement of claim in conventional mortgages, the servicer can bring the loan current by writing a check to themselves, with the past due balance tacked on the end of the loan as a sleeping lein for FHA Mortgages.
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Repayment Plan
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This is when a borrower experiences a temporary financial problem and a workout plan is developed to reinstate the mortgage by adding additional partial payments to the current payment.
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