| Bankruptcy |
Chapter 7 is a liquidation of debt and Chapter 13 is a reorganization of debt that is repaid over a specific timeframe. |
| Foreclosure |
Leagl proceeding in which a servicer obtains a court ordered termination of a borrower's equitable right of redemption or ownership. |
| Deed in Lieu of Foreclosure |
Borrower, failing to satisfy the loan obligation, assigns title to the property through executing a deed to the lender and avoids foreclosure proceeding. |
| Pre-Foreclosure Sale |
Servicer agrees to the sale of the property by the borrower to a third party for less than the amount owed to satisfy a delinguent mortgage, as agreed to by the lender, investor and mortgage insurer. |
| Short Sale |
The servicer agrees to accept a payoff less than the balance owed on the borrower's mortgage that is not delinquent. |
| Short Payoff / Restructured Loans |
Mortgage loans in which the terms of the original transaction have been changed, resulting in either the absolute forgiveness of debt or a restructure of debt through either a modification of the orginial loan or origination of a new loan. |
