Glossary and Terms

Foreclosure: A foreclosure is a legal process in which a lender repossesses or sells property due to the owner's failure to pay his/her mortgage payments.

Pre-foreclosures: A process that takes place when a notice of default has been filed against an owner of property who has failed to pay property loan payments. At this time, the lenders try to work out a resolution with the owners to make up the payments. If there is no successful resolution, then the property will then go under foreclosure.

Tax Liens: A type of lien placed against a title or property when the owner neglects to pay either state or federal taxes. The lien can either be attached to the owner's real property or a federal lien to all property of the person who owes back taxes.

Bankruptcies: A federal court legal proceeding in which a debtor who owes more than the total of his or her assets can be relieved of those obligations to repay his or her unsecured debts. Those assets are then sold to pay off as much of the debt as possible.

For Sale By Owner: Real estate that is sold by the property's owner without the assistance of a real estate agent.

Distressed property: Property that is being foreclosed or offered for sale at a price that is below market value.

Repo Home: Real estate that has been seized by a lender after a homeowner fails to make payments on his or her mortgage loan. The property is then sold at a public auction to the highest bidder at a price less then market value.

Auction Properties: Property that is sold at a public auction after the owners could not payoff the arrears or sell the property before the date of auction.