Default and Distress

Review of whether foreclosure activity and loss mitigation are moving at the same time in a restricted way.

Servicer action sending a seriously delinquent mortgage file toward foreclosure handling.

Servicer decision not to approve a requested or reviewed mortgage workout option.

Servicer offer for a workout option intended to resolve or reduce mortgage delinquency risk.

Loss mitigation option that helps resolve a distressed mortgage through property exit rather than keeping the home.

Loss mitigation option intended to help a borrower keep the home while resolving mortgage delinquency.

Ordered servicer review of mortgage workout options under investor or program rules.

Mortgage assistance path intended to resolve delinquency, avoid foreclosure, or manage an exit from the property.

Bankruptcy-related pause that can temporarily stop many mortgage collection or foreclosure actions.

Accounting treatment for a seriously delinquent mortgage account that does not by itself erase the debt.

Foreclosure-sale bid where the mortgage holder bids using the debt claim rather than new cash.

Process that may require or allow borrower-servicer discussion before a foreclosure path continues.

Stage of serious mortgage distress before a foreclosure sale or final property disposition.

Servicing activity used to protect mortgage collateral when a property is vacant, abandoned, or in serious default.

Property owned by a lender, investor, or servicer after foreclosure or a similar distress resolution.

Money left after a foreclosure sale pays the required mortgage debt, costs, and other claims.

Document package a borrower submits so a mortgage servicer can review possible loss-mitigation options.

Past-due mortgage amount added into the loan balance as part of a workout or modification structure.

Loss-mitigation submission with enough required information for the servicer to evaluate workout options.

Mortgage amount set aside for later handling instead of being collected through the current monthly payment.

Transition point when temporary mortgage forbearance ends and the missed payments must be addressed.

Borrower explanation of the financial hardship behind a mortgage default or loss-mitigation request.

Loss-mitigation submission still missing information or documents needed for servicer review.

Borrower request package used by a mortgage servicer to evaluate foreclosure-avoidance or workout options.

Loss-mitigation option that moves missed mortgage payments out of the immediate monthly catch-up schedule.

Power of sale is a loan-document right that can allow foreclosure sale procedures without first completing a full court foreclosure.

A trustee's deed is the deed used to document transfer of title after a trustee's sale in a deed-of-trust foreclosure path.

A trustee's sale is a foreclosure sale conducted under a deed-of-trust or power-of-sale process after serious mortgage default.

Written arrangement between a mortgage borrower and servicer for handling a distressed or delinquent loan.

A notice of acceleration tells the borrower the lender is demanding the unpaid balance after default under the loan terms.

Arrearage is the overdue amount the borrower owes after missed mortgage payments and related charges accumulate.

A cure period is the time allowed for the borrower to fix a mortgage default before stronger enforcement steps can begin.

A forbearance agreement is the written workout document that sets the temporary payment-relief terms in a mortgage forbearance.

A notice of intent to accelerate warns the borrower that the lender may demand the full unpaid balance if the default is not cured.

A partial claim is an FHA loss-mitigation tool that covers part of the overdue mortgage amount with a separate claim amount.

Past due amount is the amount the borrower still owes because one or more mortgage payments were missed.

A reinstatement quote shows the amount needed to cure a default and bring the mortgage current under existing terms.

Right to reinstate is the borrower's ability in some states or loan setups to cure a default and restore the mortgage before foreclosure advances.

A notice of sale tells the borrower that the foreclosed property is scheduled to be sold under the applicable foreclosure process.

A trial period plan is a temporary mortgage workout period the borrower must complete before a permanent modification may take effect.

Formal default-warning letter telling the borrower what must be cured to avoid further mortgage enforcement.

Default is the borrower's failure to meet mortgage obligations under the loan documents, often after missed payments or another material breach.

An acceleration clause is the loan provision allowing the lender to declare the full balance due after serious default or other triggering events.

Mortgage default and distress terms that explain missed payments, servicing problems, and the path toward foreclosure.

A deficiency judgment is a judgment for the unpaid debt that may remain after foreclosure or another distressed property disposition.

Delinquency means the borrower has fallen behind on required mortgage payments.

Forbearance is a temporary agreement that pauses or reduces required mortgage payments for a limited period.

Foreclosure is the legal process through which a lender or its representative enforces rights against a property after serious mortgage default.

The property-disposition event in a foreclosure process, where the home is sold and later debt or redemption questions may follow.

Judicial foreclosure is a foreclosure process that proceeds through the court system rather than relying only on a nonjudicial power-of-sale path.

A loan modification is a change to the mortgage terms intended to make the loan more sustainable for the borrower.

Loss mitigation is the set of workout efforts aimed at reducing mortgage-default harm for the borrower, servicer, lender, or all three.

Nonjudicial foreclosure is a foreclosure process that relies on document-based power-of-sale rights rather than a full court action.

A notice of default is a formal notice that the mortgage obligations have not been met and that the account is moving deeper into default status.

A redemption period is a time window in some foreclosure frameworks during which the borrower may reclaim the property by satisfying the required amount.

Reinstatement is the act of curing the default by bringing the mortgage account current according to the amount required.

Workout arrangement that spreads overdue mortgage amounts over future payments so the borrower can catch up over time.

A deed in lieu of foreclosure is a default-resolution arrangement in which the borrower transfers the property interest instead of continuing toward foreclosure.

A short sale is a sale of the property for less than the amount owed on the mortgage, with lender involvement in how the debt is resolved.