Foreclosure attorneys glossary

Short, plain-English definitions of the terms you'll meet when choosing a foreclosure Attorney provider in Polk County Metro.

What is a certificate of title in foreclosure?: A certificate of title is the court-issued legal document that transfers ownership of a foreclosed property from the lender to the successful bidder at a foreclosure sale.
What is a deficiency judgment?: A deficiency judgment is a court order requiring a borrower to pay the lender the difference between the home's foreclosure sale price and the remaining mortgage balance.
What is a forbearance agreement?: A forbearance agreement is a lender's temporary pause or reduction of mortgage payments, usually for 3 to 12 months, that requires full repayment of suspended amounts once the forbearance period ends.
What is a foreclosure sale?: A foreclosure sale is a court-ordered public auction of a property seized for nonpayment of debt, typically conducted by the sheriff in the property's county.
What is a mortgage servicer?: A mortgage servicer is the company that collects payments, manages escrow, and handles loan administration on behalf of the investor or note holder who actually owns the debt.
What is a notice of default?: A notice of default is a formal notification from a lender to a borrower that the borrower has failed to make required mortgage payments and is now in breach of the loan agreement.
What is a power of sale clause?: A power of sale clause is a mortgage or deed of trust provision authorizing a lender or trustee to foreclose and sell the property without going through court proceedings.
What is a right of redemption?: A statutory right allowing a borrower to recover their foreclosed property by paying the full debt amount owed, valid for a set period after the foreclosure sale and governed by state law.
What is a right of reinstatement?: A right of reinstatement is the borrower's ability to stop a foreclosure by paying all past-due mortgage payments, accrued interest, late fees, and foreclosure costs before the sale occurs.
What is a statute of limitations in foreclosure?: A statute of limitations in foreclosure is the deadline by which a lender must file or refile a foreclosure lawsuit after borrower default or case dismissal.
What is a trial payment plan?: A trial payment plan is a temporary period during which a borrower makes reduced monthly payments to demonstrate ability to sustain a modified loan before the lender finalizes the permanent modification.
What is a writ of possession?: A writ of possession is a court order issued after a foreclosure sale that directs the sheriff to remove occupants from the property so the new owner can take possession.
What is an automatic stay?: An automatic stay is a federal court order that instantly halts all collection and foreclosure proceedings against a debtor upon the filing of a bankruptcy case.
What is an order to show cause?: An order to show cause is a court directive requiring a homeowner to appear before a judge and present reasons why a foreclosure judgment should not be granted.
What is Chapter 13 bankruptcy?: Chapter 13 bankruptcy is a federal debt reorganization that allows homeowners with regular income to propose a repayment plan to catch up on past-due mortgage payments and avoid foreclosure.
What is Chapter 7 bankruptcy?: Chapter 7 bankruptcy is a liquidation proceeding in which a trustee sells non-exempt assets to repay creditors and discharge most unsecured debts. When filed during a foreclosure, it triggers an automatic stay that temporarily halts the lender's sale process.
What is judicial foreclosure?: Judicial foreclosure is a court-based foreclosure process in which a lender must file a lawsuit and obtain a judge's order to foreclose on a property, required in states like Florida.
What is lis pendens?: Lis pendens is a recorded notice of pending litigation that signals to third parties that legal action has been filed against a property, affecting its marketability and title until the case is resolved.
What is loss mitigation?: Loss mitigation refers to formal programs offered by lenders to help borrowers avoid foreclosure through loan modifications, forbearance, repayment plans, or short sales.
What is non-judicial foreclosure?: Non-judicial foreclosure is a lender-initiated sale of a mortgaged property outside the court system, executed under a power-of-sale clause without filing a lawsuit.
What is RESPA?: RESPA (Real Estate Settlement Procedures Act) is a federal law that regulates mortgage servicing, requiring lenders and servicers to provide clear disclosures, handle escrow correctly, and resolve borrower billing disputes within specific timelines.
What is robo-signing?: Robo-signing is the act of signing foreclosure documents, affidavits, or other legal paperwork without personally reviewing the contents or verifying their accuracy.
What is standing in foreclosure law?: Standing is the plaintiff's legal right to enforce the promissory note and file a foreclosure action, based on ownership of the debt or authority to collect it.
What is the Fair Debt Collection Practices Act?: The Fair Debt Collection Practices Act (FDCPA) is a 1978 federal law that prohibits debt collectors from using abusive, unfair, or deceptive practices when collecting debts, including mortgage obligations in default.