Foreclosure Law by state - Information
Each state foreclosure page includes a summary of your state foreclosure law
General Information about Foreclosure Law in all States.
Some Common Foreclosure Terminology
Accelerate
An option given to lenders through an "acceleration" clause in the mortgage or deed of trust requiring the borrower to pay the entire balance of the loan all at once if their loan is in default.
Assignment
The transfer of property to be held in trust or to be used for the benefit of the creditors (lenders).
Certificate of Sale
A document given to the winning bidder at a foreclosure sale stating their rights to the property once the borrowers redemption period has expired.
Clear Title
A title that is not burdened with defects.
Credit Bid
A bid on behalf of the lender at a foreclosure sale. The bid amount must be less than or equal to the balance of the loan in default.
Deed-in-lieu of Foreclosure
An instance where borrowers voluntarily convey their rights in a property to the lender.
Deed of Trust
A three party security instrument conveying the legal title to real property as security for the repayment of a loan. The three parties included in a deed of trust are the borrower, lender and trustee.
Deficiency Judgment
A personal judgment against the borrower for the remaining balance on the loan after a foreclosure sale.
Equitable Title
The present right to possession with the right to acquire legal title once a preceding condition has been met.
Free & Clear
Ownership of property free of all indebtedness.
Judicial Foreclosure
A foreclosure that is processed by a court action.
Lien
A charge upon real or personal property for the satisfaction of a debt.
Right of Redemption
A borrower's right to reacquire property lost due to a foreclosure.
Trustee
A neutral party who advertises the foreclosure property for sale and conducts the auction to sell said property to the highest bidder.
Trustee Sale
An auction of real property conducted by a trustee. Also known as a Sheriff's Sale.
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