Category: Definitions

Sometimes simply referred to as “Deed-In-Lieu”, “Deed-in-Lieu of Foreclosure” is an agreement between the lender and the borrower that allows for the transfer of the legal title of the borrower’s property to the lender…in consideration for the forgiveness of the mortgage debt. Although it’s a way to avoid foreclosure, it’s not a given that the… Continue reading “Deed-In-Lieu of Foreclosure” Defined…

While “selling short” has been a common practice in stock investing for years, just about no one was talking about a “short sale” in relation to homes or commercial properties until recent years. But, now, it’s regular content in newspapers and magazines. There are countless real estate investing classes and seminars teaching how to capitalize… Continue reading “Short Sale” Defined…

The Merriam-Webster dictionary defines “forbearance” as “refraining from the enforcement of something (as a debt, right, or obligation) that is due”. It’s a special agreement between the borrower and the lender to delay a pending foreclosure. When a borrower has problems making payments, the lender may start the foreclosure process. Even though lenders do indeed… Continue reading “Forbearance” Defined…

A “strategic default” occurs when a borrower decides to stop making mortgage payments (i.e., thus defaulting) on his/her debt…even though they have the financial ability to continue making payments. These borrowers are called “Walkaways”. But, why on earth would they do this…and take such a major hit to their credit report that lasts for 10… Continue reading “Strategic Default” Defined…