Default Failure to meet a loan obligation, such as making required payments. A loan can also default for reasons other than missed payments.

Delinquency A payment is overdue. Delinquency describes payment status; default describes a failure under the loan agreement.

Preforeclosure The period before a foreclosure sale is completed. The borrower generally still owns the property; a notice does not make it bank-owned.

Foreclosure The legal process used to enforce a lien and sell the property to satisfy a secured debt. Procedures depend on state law.

REO — Real Estate Owned Property acquired by a lender, investor, or similar entity, typically after foreclosure or a deed in lieu. Often called bank-owned, even when the owner is not a bank.

BPO — Broker Price Opinion An agent or broker’s written estimate of probable selling price. It may include an interior inspection or exterior observations. It is not an appraisal.

Short sale A sale in which available proceeds are insufficient to fully pay one or more secured debts and the affected creditor approves a reduced payoff to release its lien.

Loss mitigation The process of evaluating options to reduce losses from a troubled loan. Options can involve keeping the home or transferring ownership.

Typical path: delinquency → default → possible foreclosure → possible REO. A short sale, modification, reinstatement, or other resolution may change that path. A third-party auction purchase does not become lender REO.

Scope: General U.S. industry terminology. State law, loan documents, investor rules, and client instructions control individual files. This handout is educational, not an official KW policy manual or legal, tax, or appraisal advice.

Borrower / mortgagor The person or entity obligated on the loan; mortgagor refers to the party granting the mortgage.

Lender / mortgagee The lender provides financing; mortgagee refers to the party receiving the mortgage security interest. The original lender may later transfer the loan.

Investor / loan owner The entity that owns the loan or an interest in it. Its requirements may control loss mitigation and approval decisions.

Servicer / subservicer The company managing payments and day-to-day loan administration. A subservicer performs servicing work for another entity.

Trustee In a deed-of-trust arrangement, the party with duties under that instrument, which may include conducting an authorized nonjudicial sale.

Asset manager / outsourcer An asset manager oversees property disposition for the owner. An outsourcer manages assigned work or vendors on the owner’s behalf.

Promissory note The written promise to repay the debt, including repayment terms. It is distinct from the document securing the loan.

Mortgage / deed of trust A security instrument tying the property to repayment of the debt. The document used and enforcement process vary by state.

Lien / lienholder A legal claim against property securing an obligation; the lienholder holds that claim. Mortgages, taxes, judgments, and HOA debts can create liens.

First lien / junior lien A first lien generally has priority over junior liens. Recording order matters, but statutes and other rules can change priority.

Assignment / servicing transfer An assignment transfers a loan-related interest; a servicing transfer changes who administers the loan. These are different events.

Principal / arrearage / escrow shortage Principal is unpaid borrowed money. Arrearage is overdue amounts. An escrow shortage is insufficient funds for escrow requirements such as taxes and insurance.

Agent practice: Track the actual sale date and verify any postponement with the responsible party. A listing, offer, or short-sale submission alone does not establish that a sale has stopped.

NOD — Notice of Default A formal notice identifying a default. Its legal significance, recording requirements, and cure period depend on the jurisdiction and loan.

Breach letter / demand letter A notice describing a loan violation and amounts or actions needed to cure it. It may precede foreclosure notices.

Acceleration Making the full unpaid loan balance due after a qualifying default and required procedures.

Reinstatement / cure Bringing a loan back into compliance by paying required overdue amounts and charges or otherwise correcting the default. Availability and deadlines vary.

Payoff / payoff statement The amount required to satisfy the loan in full as of a specified date. It can include interest, fees, and advances beyond principal.

Per diem interest Interest accruing each day. A payoff may change when the closing date changes.

Judicial foreclosure A foreclosure pursued through a court action.

Nonjudicial foreclosure A foreclosure using an authorized power-of-sale process rather than a foreclosure lawsuit. Required notices and protections still apply.

Lis pendens A recorded notice that litigation affects the property. It is not itself proof that a foreclosure sale has occurred.

NOS / NTS — Notice of Sale / Notice of Trustee Sale Notice of a scheduled foreclosure sale. Names, contents, publication, and deadlines vary by state.

Trustee sale / sheriff sale / credit bid Foreclosure auction terminology depends on the process. A credit bid lets an eligible secured creditor bid using debt owed rather than only cash.

Postponement / redemption / automatic stay Postponement moves a sale date. Redemption is a legally available right to recover property by payment. A bankruptcy automatic stay generally pauses covered collection actions, subject to exceptions and court orders.

Forbearance An approved temporary pause or reduction in payments. Missed amounts are generally still owed; confirm how repayment will work.

Repayment plan / payment deferral A repayment plan spreads missed amounts over scheduled payments. A deferral moves eligible amounts to a later repayment event under program terms.

Loan modification An approved change to loan terms intended to address repayment problems. Possible changes depend on the loan and program.

DIL — Deed in Lieu of Foreclosure A voluntary transfer of ownership to the lender or its designee as an alternative to foreclosure. Debt treatment and other liens require review.

Hardship / hardship letter A financial circumstance affecting the borrower’s ability to pay, and the written explanation or certification supporting it.

Loss mitigation package / complete application The financial information and supporting documents required for review. Submission does not mean the servicer considers the application complete.

Third-party authorization The borrower’s permission for a designated person to communicate with the servicer. It does not automatically authorize signing documents or making decisions.

SPOC — Single Point of Contact / negotiator A designated servicing contact or person coordinating review. A negotiator may need additional investor or insurer approval.

Short sale package The submission requested for a short-sale review, often including borrower financials, authorization, listing, offer, valuation support, and estimated settlement figures.

Arm’s-length transaction A transaction between independent parties acting in their own interests. Disclose relationships and follow any required affidavit and investor restrictions.

Short sale approval letter Written terms authorizing an accepted reduced payoff. Review the approved buyer, price, net proceeds, costs, deadline, and treatment of remaining debt.

Approval expiration / extension Approval is time-limited. A requested extension is not granted until confirmed by the approving party; changed terms may require another review.

Negative equity / underwater The property’s value is below the debt secured by it. Negative equity alone does not establish short-sale eligibility.

Net proceeds / net sheet Net proceeds are funds remaining after transaction costs and adjustments. A net sheet estimates them; the amount available to each creditor depends on approved allocations.

Deficiency Debt remaining after applicable sale proceeds or credits are applied. Whether it can be collected depends on law, documents, and written agreements.

Deficiency waiver / debt forgiveness An agreement giving up collection of an unpaid balance. Confirm the exact written scope for each creditor.

Lien release / satisfaction A document clearing a secured claim from title. A lien release alone does not necessarily eliminate personal liability for unpaid debt.

Seller contribution / promissory note A creditor may request cash or a separate promise to repay part of the shortage. Refer the proposed obligation for legal review before acceptance.

Junior lien settlement An agreement addressing a subordinate lien, often with an approved payment for release. Resolve both title release and remaining liability.

MI — Mortgage Insurance Coverage protecting the loan holder against certain losses. An insurer’s approval may be required; mortgage insurance is not homeowners insurance.

Title search / title commitment A title search examines recorded ownership and claims. A commitment states conditions and exceptions for issuing a title policy; it is not the final policy.

HOA lien / superpriority An association lien secures qualifying unpaid obligations. Some laws give part of certain liens special priority; obtain file-specific title and legal guidance.

Settlement statement / HUD-1 / Closing Disclosure Documents showing closing charges and disbursements. The required form depends on the transaction; use the form accepted by the closing agent and approving creditor.

1099-C / cancellation of debt income Form 1099-C reports certain canceled debt. Cancellation can have tax consequences; exclusions depend on the taxpayer and current law. Refer to a tax professional, without promising tax-free treatment.

BPO rule: Follow state licensing limits and client instructions. Use independent evidence, disclose assumptions and conflicts, and never select comps to force a requested result. A BPO is not a property inspection or guarantee of condition.

Subject property / comparable property The subject is the property being valued. A comparable is a similar property used to support the price opinion.

Interior BPO / exterior BPO An interior BPO includes authorized interior observations. An exterior or drive-by BPO relies on exterior observations and other data; disclose interior limitations.

CMA — Comparative Market Analysis An agent’s analysis of competing listings and sales, often used to guide listing or offer pricing. A client-ordered BPO typically follows a specific reporting format.

Appraisal / AVM An appraisal is a professional valuation developed under applicable appraisal requirements. An automated valuation model uses data and statistical methods to estimate value.

As-is value / as-repaired value / ARV As-is reflects present condition. As-repaired assumes specified repairs are completed. ARV usually means after-repair value; define the assumed work and client terminology.

Market value / probable sale price / list price Market value uses a defined valuation standard. Probable sale price estimates a likely sale outcome. List price is an asking or marketing figure; identify which the assignment requests.

Sold comps / active comps / pending comps Closed sales show completed transactions. Active listings show competition. Pending listings show properties under contract; the final price may be unknown.

Adjustments / bracketing Adjustments account for meaningful differences between comps and the subject. Bracketing selects comps above and below important subject features where available.

DOM / CDOM Days on market and cumulative days on market. MLS definitions and rules for relisting vary; check the data source.

GLA — Gross Living Area / price per square foot GLA is measured living area under the applicable standard. Price per square foot is a comparison tool, not a complete valuation method; use consistent area data.

Deferred maintenance / repair estimate / functional obsolescence Deferred maintenance is postponed upkeep. A repair estimate projects costs. Functional obsolescence is a loss of utility from design or layout shortcomings.

Market trend / absorption rate / reconciliation Trend describes price or activity direction. Absorption measures selling pace; state the formula and period. Reconciliation weighs the evidence into the final supported opinion.

Assignment / work order / SLA An assignment authorizes specific work. A work order describes the task. A service-level agreement sets performance expectations or turnaround times.

Occupancy check / vacancy / possession A check documents observed occupancy indicators. Vacancy means apparently unoccupied; possession concerns lawful control. An empty-looking house does not authorize entry or a lock change.

Property preservation Authorized work to protect the property, such as securing openings, winterizing systems, maintaining grounds, or addressing hazards.

Rekey / secure / winterization Rekeying changes lock access; securing addresses unauthorized access; winterization protects vulnerable plumbing or systems from freezing under the approved scope.

Trash-out / personal property Trash-out removes authorized debris. Remaining belongings may be protected personal property; removal and storage require proper authority and procedures.

Cash for keys / relocation assistance A documented voluntary move-out arrangement that may offer money for agreed possession and property condition. Use owner-approved terms and follow occupancy laws.

Eviction / unlawful detainer A legal process to recover possession. The available action and occupant protections depend on law; agents should not perform self-help removals.

Conveyance / marketable title Conveyance transfers ownership. Marketable title generally means title sufficiently free of material defects to be acceptable under governing law and the contract.

Marketing plan / MMR — Monthly Marketing Report The strategy for exposure and sale, and a periodic update on activity, feedback, competing properties, condition, and recommended changes.

As-is sale / seller addendum As-is describes the agreed condition and repair allocation. An REO addendum adds seller terms; neither automatically eliminates disclosure duties or all buyer rights.

Highest and best / multiple-offer procedure A request for buyers’ strongest terms in a competitive process. Follow seller instructions, applicable law, and brokerage procedures for fair and accurate offer handling.

EMD / POF / reimbursement / chargeback Earnest money deposit is contract security; proof of funds supports available cash. Reimbursement repays approved expenses; a chargeback reverses or assesses an amount under the vendor agreement.

Why agents hear these terms: The company collecting payments, the loan owner, and the party approving a short sale may be different entities. Record each role rather than calling every party the bank.

Master servicer An entity overseeing servicing obligations across a portfolio, sometimes supervising subservicers. Its role depends on the governing servicing agreements.

Special servicer A servicer assigned loans needing specialized management, often because of default or other problems. This label is especially common in commercial lending.

Performing loan / nonperforming loan A performing loan meets the applicable payment criteria. A nonperforming loan fails the applicable criteria; the exact delinquency threshold depends on the reporting framework.

NPL / RPL Nonperforming loan and reperforming loan. An RPL previously had payment problems and later resumed qualifying payments; it is still a loan, not REO.

MSR — Mortgage Servicing Rights Contractual rights to service loans and receive servicing compensation. Selling servicing rights does not necessarily sell ownership of the loans.

Servicing boarding / deboarding Loading a transferred loan into a servicing system, or removing it from the outgoing system. Balances, documents, and pending reviews must transfer accurately.

Goodbye letter / welcome letter Common names for outgoing and incoming servicing-transfer notices. They identify changes in payment administration; verify the effective date and instructions.

System of record / servicing notes The designated authoritative system and its account activity notes. An agent portal may show only part of the information available to the servicer.

Document custodian / collateral file A custodian holds specified loan documents. The collateral file contains documents supporting the debt and security interest; it is different from a marketing file.

GSE / agency / private-label investor Government-sponsored enterprise, government-related program, or nongovernment securitization investor. Fannie Mae and Freddie Mac are GSEs; FHA insurance and VA guarantees are different structures.

Portfolio loan / securitized loan A portfolio loan is held as an investment by an institution. A securitized loan supports securities issued under a transaction structure.

Delegated authority / escalation Delegated authority allows decisions within assigned limits. Escalation sends an issue to a higher authority; sending it does not establish approval.

Example: A $300,000 UPB can produce a higher payoff after interest and permitted charges. Ask for an itemized, dated payoff rather than using principal as the closing amount.

UPB — Unpaid Principal Balance The principal remaining on the loan. UPB does not automatically include accrued interest, escrow advances, legal fees, or other payoff items.

P and I / PITI Principal and interest; principal, interest, taxes, and insurance. HOA dues and other expenses may be additional, so confirm what the quoted payment includes.

Contractual due date / grace period The scheduled payment deadline and any period before a specified late charge applies. A grace period does not necessarily change the due date or credit-reporting rules.

Paid-through date / next payment due The installment period satisfied and the next installment owed. Read the servicer’s date convention instead of assuming that a displayed date means the account is current.

Payment application / payment waterfall How received funds are allocated among installments, principal, interest, escrow, fees, or other amounts. Loan terms and applicable law govern the sequence.

Partial payment / suspense account A payment below the required amount may be held as unapplied funds, often called suspense. It may not satisfy a full installment until sufficient funds accumulate.

Unapplied funds / payment reversal Unapplied funds have not yet been allocated to an obligation. A reversal removes a prior posting, for example after a returned payment or correction.

Curtailment / principal-only payment An extra payment applied to reduce principal under the applicable requirements. It does not necessarily replace the next scheduled installment.

Accrued interest / default interest Accrued interest has accumulated but remains unpaid. Default interest is a contractual rate or charge triggered by qualifying default, where enforceable.

Servicing advance / corporate advance Funds paid by the servicer for costs such as protection, taxes, or legal work. Corporate advance is a system label whose contents must be verified.

Delinquency advance / recoverable advance A delinquency advance covers required investor remittances despite missing borrower payments. Recoverable means reimbursement is expected under applicable terms; it does not establish borrower liability.

Charge-off / write-down Accounting recognition that a debt or asset has lost value. A charge-off alone does not prove that the debt was forgiven, the lien released, or collection prohibited.

Agent practice: Obtain current tax, insurance, and association information. Do not assume that a monthly mortgage payment includes every property expense or that an insurance policy covers vacancy.

Servicing escrow / closing escrow Servicing escrow collects funds for recurring property charges. Closing escrow holds transaction funds and documents. The same word describes different functions.

T and I — Taxes and Insurance Shorthand for property taxes and insurance amounts. Ask whether a quoted advance, balance, or payment refers to these items only.

Escrow analysis The servicer’s review of expected deposits, disbursements, and balances to calculate escrow requirements and identify shortages, surpluses, or deficiencies.

Escrow cushion A permitted reserve in the servicing escrow account for payment timing and variations. It is subject to legal limits and loan terms.

Escrow shortage / escrow deficiency A shortage means the balance is below its required target. A deficiency means the account has a negative balance. Neither is the same as a mortgage deficiency after sale.

Escrow surplus / escrow disbursement A surplus is an excess over the applicable target balance. A disbursement is an actual payment from the account, such as payment of a tax bill.

Escrow waiver / nonescrowed loan An arrangement in which specified property charges are paid directly by the borrower rather than through the servicer. Loan and program requirements control availability.

Hazard insurance / flood insurance Hazard coverage addresses specified property risks; flood coverage addresses a different risk and is generally separate. Confirm actual policy terms and required coverage.

Force-placed insurance / lender-placed insurance Coverage obtained by the servicer when required borrower coverage is absent or inadequate under applicable rules. It primarily protects the creditor’s interest and may cost more.

Loss payee / mortgagee clause Policy provisions identifying an interested creditor and its insurance rights. Incorrect names or missing clauses can delay claim or coverage processing.

Loss draft / insurance proceeds holdback An insurance claim check and funds retained pending repair or other requirements. A claim payment is not automatically available for unrestricted use.

Tax advance / tax lien / special assessment A tax advance is a payment made on the borrower’s behalf. A tax lien secures taxes; a special assessment is a separate authorized charge that may affect title or payoff.

Agent practice: Keep a communication log with date, contact, department, file number, exact request, response, and next deadline. Distinguish what was requested from what was confirmed.

DPD — Days Past Due The number of days a required payment is overdue under the applicable calculation. Confirm the reporting date and oldest unpaid installment.

Delinquency bucket / aging report A grouping such as 30, 60, or 90 days past due, and a report organizing accounts by age. These are status indicators, not universal foreclosure schedules.

Rolling delinquency A pattern in which payments continue but remain an installment behind. Regular recent payments do not necessarily mean the account is current.

Early intervention / continuity of contact Servicing processes for contacting delinquent borrowers and providing access to help. Applicable federal requirements have scope limits and exceptions.

Right-party contact / contact attempt Right-party contact reaches the borrower or an authorized person. A call, letter, or visit attempt does not necessarily establish that contact occurred.

Collections / default servicing Collections seeks overdue amounts. Default servicing manages troubled accounts and related options, which may include loss mitigation, foreclosure coordination, and property monitoring.

Foreclosure referral / foreclosure hold Referral sends a file for foreclosure handling. A hold pauses specified activity; confirm its scope, reason, authority, and expiration rather than assuming all activity stopped.

Dual tracking Pursuing foreclosure while a borrower is being considered for loss mitigation. Federal and state restrictions depend on the facts; not every parallel activity is automatically prohibited.

NOE — Notice of Error A borrower’s written assertion of a covered servicing error. Special submission addresses and procedures may apply; an agent complaint is not automatically a qualifying notice.

RFI / QWR Request for Information and Qualified Written Request. These are written servicing inquiry concepts with legal requirements; the labels are not interchangeable with every email to a servicer.

Successor in interest / confirmed successor A person acquiring a qualifying ownership interest through events such as death or certain family transfers. Confirmation concerns identity and ownership; it does not itself create personal liability.

Payoff dispute / servicing complaint A challenge to account figures or servicing conduct. Document the issue and route it promptly; making a complaint does not itself cancel a foreclosure sale.

Example: Reducing the monthly payment does not necessarily reduce the debt. A modification can capitalize arrears, extend maturity, and leave a separate deferred amount.

Workout / retention option / liquidation option A workout addresses a troubled loan. Retention options aim to keep ownership; liquidation options resolve the loan through sale or transfer of the property.

Trial Payment Plan / TPP A temporary payment arrangement used in certain modification reviews. Successful trial payments do not by themselves prove that permanent modification documents have been completed.

Capitalization Adding eligible unpaid amounts to principal under an approved agreement. It can raise the balance even when the monthly payment falls.

Term extension / maturity date A term extension lengthens repayment. Maturity is when the remaining obligation becomes due under the loan; it is not necessarily the next payment date.

Rate reduction / step-rate modification A reduction lowers the interest rate. A step-rate structure changes it at specified intervals; verify later payment changes.

Principal forbearance / principal forgiveness Forbearance sets aside repayment of specified principal under agreed terms. Forgiveness cancels principal. A deferred balance may still be due later.

Balloon payment / deferred balance A balloon is a large scheduled payment. A deferred balance is postponed debt that may become due at sale, payoff, refinance, or another event specified by the agreement.

Partial claim In certain government loan programs, an eligible amount is addressed through a separate subordinate obligation or claim mechanism. Repayment terms and eligibility are program-specific.

DTI — Debt-to-Income Ratio Monthly debt obligations divided by qualifying monthly income. Front-end and back-end ratios measure different expense groups; confirm the program’s income and debt definitions.

NPV — Net Present Value A method comparing projected future cash flows in today’s dollars. Some workout reviews use an NPV model; an agent’s net sheet is a different calculation.

Complete package / stale document / refresh A complete package contains all required items. Documents become stale when too old for the review; refreshing updates them to the required period.

Appeal / reapplication / redefault An appeal asks for review of a decision where available. Reapplication submits a new request. Redefault is a new failure after a cure or workout.

Agent practice: Obtain the actual approval letter for every affected creditor. Confirm authorized disbursements, expiration, lien release, and remaining liability before describing a short sale as fully approved.

Preapproved short sale / approved price An early program or pricing authorization, subject to its written terms. It does not necessarily approve a future buyer, contract, net, or closing date.

Minimum acceptable net / net requirement The amount an approving creditor requires from closing. A higher purchase price can still fail review if costs reduce the creditor’s net below its requirement.

Investor approval / insurer approval Consent from the loan owner or applicable mortgage insurer. A servicer recommendation may still require these additional decisions.

Counteroffer / value dispute A counteroffer changes proposed terms. A value dispute challenges the valuation with relevant evidence; it does not authorize inaccurate or selectively misleading comps.

Borrower financial statement / P and L A financial statement summarizes income, expenses, assets, and debts. A profit-and-loss statement shows business income and expenses for a stated period.

Contribution review / cash reserves Evaluation of whether the borrower must contribute funds, considering program rules and documented resources. Available account balances do not alone establish an approved contribution.

Settlement allocation / unauthorized payment Allocation determines who receives closing funds. Side payments or disbursements outside approved terms can jeopardize the transaction; disclose and obtain required written consent.

Release of liability / reservation of rights A release gives up specified claims against a person. A reservation preserves identified rights. Read both alongside the lien-release language.

Recourse / nonrecourse debt Recourse permits personal collection as allowed by law and agreement. Nonrecourse limits recovery in specified ways. Classification depends on the actual loan and applicable law.

Anti-deficiency protection A legal restriction on collecting certain remaining debt. Coverage can turn on loan type, property use, foreclosure method, transaction details, and state law.

Cancellation of debt / insolvency Cancellation eliminates qualifying debt. For tax purposes, insolvency generally measures liabilities exceeding asset value immediately before cancellation; a tax professional must apply the rules.

1099-A / 1099-C / Form 982 Forms concerning acquisition or abandonment of secured property, cancellation of debt, and certain debt-discharge tax exclusions or adjustments. They serve different purposes and require tax review.

Agent practice: Use the legal description, recording information, and title evidence to match documents to the correct property. Similar owner names and street addresses can produce incorrect matches.

Trustor / beneficiary In a deed of trust, the trustor grants the security interest; the beneficiary receives its benefit. The trustee has a separate role.

Power of sale A provision authorizing sale through a legally permitted process after default and required procedures. It does not eliminate notice requirements.

Substitution of trustee A document replacing the trustee under a deed of trust. Verify its authority and recording as required for the particular file.

Allonge / endorsement An allonge is an attached paper used for note endorsements. An endorsement transfers or identifies rights in the note, subject to applicable law.

Chain of title / chain of assignments The sequence of ownership transfers for real estate, or transfers of specified loan interests. They are related records but are not the same chain.

Recording / constructive notice Recording places a document in public land records. Constructive notice means the law treats someone as having notice under specified circumstances.

Legal description / APN The legal description identifies the real property interest. An Assessor’s Parcel Number is an administrative identifier; an address or APN may not replace the required legal description.

Election to sell / notice of acceleration An election invokes a sale remedy; acceleration demands the full debt. Whether a notice accomplishes one or both depends on its wording and governing law.

Affidavit / declaration Formal statements used to establish facts, such as mailing, authority, or loan status. The oath or penalty-of-perjury requirements depend on the document.

Request for notice / notice recipient A recorded or otherwise recognized request to receive designated notices, and the party entitled to receive them. Required recipients vary by proceeding.

Rescission of NOD / cancellation of sale notice Withdrawal of a specified recorded default or sale notice. Confirm what was rescinded; it does not necessarily forgive debt or release the security instrument.

Reconveyance / release of mortgage Documents used to release a deed of trust or mortgage after satisfaction or another authorized release. Verify recording and the obligations actually released.

Agent practice: Court deadlines belong with counsel. A hearing, filed motion, or pending appeal does not by itself establish that an auction is stayed.

Complaint / petition The pleading that begins a court case and states requested relief. Filing it does not itself transfer title or establish that allegations are proven.

Plaintiff / defendant The party bringing the lawsuit and the party against whom it is brought. Several owners, borrowers, or lienholders may be named.

Summons / service of process A summons gives formal notice of a case. Service delivers required papers using legally authorized methods; deadlines depend on the proceeding.

Answer / affirmative defense An answer responds to allegations. An affirmative defense raises a legal reason relief should be limited or denied. An attorney should assess filings and deadlines.

Default / default judgment In litigation, default concerns failure to respond or defend as required; a default judgment is a court ruling. This differs from default under a loan agreement.

Summary judgment A court decision resolving a claim without trial when the legal standard is met. It is not merely an accelerated auction date.

Judgment of foreclosure / decree of sale A court order establishing foreclosure relief or directing a sale. Read the order for amounts, conditions, and remaining procedural steps.

Writ of execution / order of sale Court process authorizing enforcement or sale as permitted by law. The name and issuing authority vary by jurisdiction.

Sheriff / referee / commissioner Officials or court-appointed persons who may conduct or administer a judicial sale. Their duties are defined by local law and the court order.

Sale confirmation / ratification Court approval of a sale where required. A winning bid may precede the point at which the sale becomes legally final.

TRO / injunction A Temporary Restraining Order or other injunction can prohibit specified acts. Read the actual order and effective period; a request for one is not an entered order.

Dismissal / dismissal without prejudice Dismissal ends a case or claim. Without prejudice generally leaves room to bring it again, subject to applicable limits; it does not necessarily cancel the underlying debt.

State context: Nevada and California both use deed-of-trust terminology, but their notice, mediation, redemption, and deficiency rules differ. Use the state’s current law and the actual file; do not import one state’s calendar into another.

Statutory foreclosure process A sale process governed by legislation, often using a power of sale. There is no single national sequence or timetable.

Cure period / reinstatement deadline The time allowed to address a default and the last point for a particular reinstatement right. Exact deadlines differ by law and transaction.

Notice by mailing / posting / publication Different ways of giving legally required notice. Completion of one method may not satisfy requirements for the others.

Proof of mailing / proof of publication Evidence that specified notices were sent or published. These documents help establish compliance but require review in context.

First notice or filing / foreclosure start Terms identifying the action that legally begins foreclosure for a particular rule. A collection call or late notice may not be that action.

Federal 120-day restriction For covered loans, Regulation X generally restricts the first foreclosure notice or filing until more than 120 days delinquent, subject to exceptions. This is not a guaranteed sale delay.

Loss mitigation foreclosure restriction A rule limiting specified foreclosure steps in qualifying application circumstances. Coverage, completeness, timing, and exceptions matter; submitting any document is not enough.

Foreclosure mediation / settlement conference A structured discussion about resolution. Participation rights, application procedures, and effects on sale timing depend on the governing program.

SCRA — Servicemembers Civil Relief Act Federal protections that can affect qualifying military borrowers and foreclosure proceedings. Applicability is fact-specific; refer potential coverage for legal review.

Moratorium / administrative hold A moratorium restricts specified activity for an identified period or category. An administrative hold is an operational pause; neither should be assumed to cover every loan or action.

Tender / payoff before sale Tender is an offer of payment meeting applicable requirements. The amount, method, recipient, and timing needed to stop a sale must be verified.

Wrongful foreclosure / sale challenge A claim that foreclosure violated legal requirements. An allegation does not automatically void a sale or authorize agents to disregard recorded title.

Critical distinction: A foreclosure auction enforces a lien. An auction of an already-owned REO asset markets the owner’s property. The word auction alone does not identify the legal process or contract terms.

Opening bid / minimum bid The amount at which bidding begins or the least acceptable bid under sale instructions. It may differ from debt, market value, or an online advertised estimate.

Reserve / reserve met A seller’s minimum acceptable price in an auction using a reserve. Some auction formats do not use one; verify whether the event is a statutory sale or an REO auction.

Beneficiary bid / credit bid A secured creditor’s bid using qualifying debt as credit instead of paying the entire bid in cash. Applicable law and bidding authority control the amount.

Full credit bid / partial credit bid A bid crediting the full qualifying debt amount, or less than that amount. These can have legal consequences beyond who wins the auction.

Third-party bidder / successful bidder A bidder other than the foreclosing creditor, and the winning bidder. Winning does not remove conditions governing payment, finality, or title transfer.

Bidder deposit / certified funds Money required to qualify or secure a bid, and payment in an accepted guaranteed form. Auction deposit rules differ from ordinary purchase-contract earnest money.

Bid increment / proxy bid / online bid The amount of each bid increase, a bid placed under authorized instructions, or an electronic bid. Platform and statutory rules determine what is permitted.

Crier / auctioneer / auction platform The person announcing or conducting bidding, or the system receiving bids. A platform may display data without being the party authorized to confirm a legal postponement.

Continued sale / postponed sale / canceled sale A continued or postponed sale moves to another time. A canceled sale is withdrawn; a new sale may later be scheduled if legally permitted.

Subject to senior liens / lien survival An auction purchase may remain burdened by claims with priority or other surviving interests. Do not assume the sale erases every lien.

Buyer premium / auction fee Additional charges in some auction formats. They are not universal statutory foreclosure charges; review the actual terms before calculating a bid or buyer cost.

Redemption exposure / auction due diligence A qualifying redemption right can affect a purchaser after sale. Due diligence includes title, possession, condition, payment rules, and sale finality; access may be limited.

Example: The buyer holds a recorded foreclosure deed, but occupants remain. Ownership and the right to immediate physical possession must still be analyzed separately; the deed alone does not authorize a lockout.

Trustee’s deed upon sale The deed commonly used to convey title following a deed-of-trust sale. Delivery, recording, and legal effect must be verified under local law.

Sheriff’s deed / referee’s deed Deeds used in certain court-supervised sales. The correct instrument depends on jurisdiction and the officer conducting the sale.

Certificate of sale / certificate of purchase Evidence of a sale or purchase in jurisdictions using such certificates. It may precede the deed and may be affected by confirmation or redemption requirements.

Equity of redemption / statutory redemption An equitable right generally concerns paying secured debt before foreclosure. Statutory redemption may allow recovery after sale where the law provides it; amounts and deadlines vary.

Surplus funds / excess proceeds Money left after sale expenses and entitled claims are paid in the required order. Other claimants may have priority before funds reach the former owner.

Deficiency judgment / fair-value limitation A judgment imposing collectible remaining liability, if permitted. Some laws limit recovery using property value or other protections rather than only the bid amount.

Merger / extinguishment / surviving lien Merger can combine legal interests under applicable rules. Extinguishment ends an interest; a surviving lien remains enforceable against the property. Title counsel determines the result.

Title curative / quiet title Curative work addresses title defects. A quiet-title action asks a court to determine competing property claims; it is not a routine substitute for missing approval.

Bona fide purchaser / bona fide tenant Legal classifications involving good faith and other requirements. A purchaser’s or tenant’s rights depend on the applicable definition, not the label an agent assigns.

Notice to quit / writ of possession A notice requires occupants to leave or respond under law. A writ authorizes lawful recovery of possession through the proper enforcement process.

PTFA — Protecting Tenants at Foreclosure Act Federal protections for qualifying tenants after foreclosure, alongside state or local rules. Notice and lease rights require file-specific review.

Sale rescission / sale set-aside Reversal of a sale through an authorized process or court relief. A disputed sale is not automatically reversed, and a deed may require corrective action.

Agent practice: Report a known bankruptcy promptly to the broker, client, and closing team. Do not independently decide that dismissal, discharge, abandonment, or relief from stay authorizes the planned closing.

Debtor / creditor The person or entity owing debt and the party holding a claim. Bankruptcy uses these roles even when several loans affect one property.

Chapter 7 / Chapter 13 / Chapter 11 Different bankruptcy chapters commonly associated with liquidation, individual debt adjustment, and reorganization. Their effect on a particular sale requires counsel.

Petition date / bankruptcy estate The filing date, and the legal estate containing property interests covered by bankruptcy law. An owner’s ability to sell may be restricted.

Bankruptcy trustee / debtor in possession The trustee administers designated estate matters. In some cases the debtor retains operating authority as debtor in possession, subject to legal limits.

Automatic stay / relief from stay A stay generally pauses covered actions. Relief permits specified action; inspect the order before treating foreclosure as authorized.

Proof of claim / secured claim A filed statement asserting a creditor’s claim, and a claim secured by collateral. Filing a claim does not resolve every dispute about it.

Prepetition / postpetition arrears Amounts owing before the bankruptcy filing and amounts arising afterward. They may receive different treatment under the plan and court rules.

Plan / confirmation order A proposed treatment of obligations and the court order approving a plan. A proposal is not yet a confirmed plan.

Discharge / dismissal Discharge removes specified personal liability. Dismissal ends the case without that discharge; a valid unavoided lien may survive discharge.

Abandonment / exempt property Abandonment removes an estate interest through the authorized process. Exemptions protect qualifying debtor interests; neither automatically releases a mortgage lien.

Motion to sell / sale free and clear A request for sale authority, and a sale removing specified interests under court-approved terms. Read the order and treatment of proceeds.

Adequate protection / cash collateral Protections for qualifying secured interests and cash subject to certain creditor interests. Agents should refer authority and use-of-proceeds issues to counsel.

Example: An asset assignment asks for exterior photos and an occupancy report. It does not automatically authorize interior access, a rekey, removal of belongings, or advertising the property for sale.

Acquisition date / REO boarding The date an owner acquires the asset and the process of creating its REO management record. Confirm the event used by the client’s system.

REO inventory / disposition Inventory is the owner’s stock of acquired properties. Disposition is the process of selling or otherwise resolving an asset.

Prelisting / listing authorization Prelisting covers work before active marketing. Listing authorization establishes permission and terms to market; an assignment email may authorize only initial inspection.

Initial inspection / initial condition report The first authorized review and documented condition summary. Identify inaccessible areas, observed damage, utilities, safety issues, and supporting photographs.

Occupancy determination / occupant contact An assessment of who appears to be using the property, and permitted communication with occupants. Follow the approved scope and avoid representing assumptions as verified facts.

Eviction assignment / occupied REO A file assigned for lawful possession recovery, or an acquired property with occupants. Listing status does not eliminate tenant or former-owner protections.

Vendor credentialing / E and O / W-9 Verification of qualifications; Errors and Omissions insurance; and an IRS taxpayer-identification form. Requirements differ by client and assignment.

REO portal / task queue / milestone The client’s workflow system, pending task list, and defined progress event. Completing a portal checkbox should correspond to actual completed work.

Due date / turnaround time / exception request A deadline, the time allowed for a task, and a request to depart from standard requirements. An exception remains pending until approved.

Access authorization / lockbox code Permission to enter and the means of obtaining keys. Possession of a code does not itself establish legal entry authority.

Vacant property registration / VPR A local registration process for qualifying vacant or distressed properties. Responsibility, triggers, renewal, and fees vary by municipality.

Code violation / municipal lien A cited failure to meet local requirements, and a claim securing qualifying charges. A violation notice and a recorded lien are different records.

Agent practice: Do not promise reimbursement based only on an informal conversation. Retain written scope, spending authority, vendor pricing, completion evidence, and the required submission deadline.

P and P — Property Preservation and Protection Work intended to prevent deterioration and protect the asset. The client’s authorization and applicable occupancy rules define what can be performed.

FSM / field services vendor Field Service Manager, particularly in HUD operations, or a vendor performing property inspections and preservation. The field vendor may be separate from the listing brokerage.

Allowable / not-to-exceed amount A cost category or limit under a client schedule, and a maximum authorized spend. A published allowance is not always advance permission for every job.

Bid / scope of work / work authorization A price proposal, a detailed description of tasks, and permission to perform them. Keep all three aligned to avoid scope and billing disputes.

Emergency repair / hazard abatement Work addressing an urgent threat or removing a hazard. Follow emergency protocols, document conditions, and obtain approval when required.

Board-up / roof tarp / water extraction Temporary securing, leak mitigation, or removal of standing water. Temporary measures do not establish that permanent repairs are complete.

Dewinterization / rewinterization Restoring systems for authorized use or testing, then protecting them again when required. Coordinate utilities and qualified vendors to avoid damage.

Utility activation / utility transfer / utility cap Starting service, changing the responsible account, or a client spending limit. Inspect for safe activation and verify who pays before ordering service.

Recurring service / grass cut / pool maintenance Repeated authorized work to maintain the site. Frequency, seasonal requirements, safety measures, and evidence requirements are client- and location-specific.

Personal property inventory / debris volume A record of remaining belongings, and a measure of removable debris. Do not classify everything left behind as trash.

Before and after photos / completion evidence Records showing the original condition and performed work. Include required dates, locations, invoices, and other support without staging or misrepresenting completion.

Invoice reconciliation / rejected expense / chargeback Matching charges to approvals and proof, a disallowed submission, or an assessed reversal. Resolve differences using the contract, scope, and documentation.

Example: Offer A is $400,000 with $15,000 in seller credits. Offer B is $395,000 with none. Before other costs, B produces $10,000 more for the seller; financing, contingencies, and certainty still matter.

List-price recommendation / pricing approval The broker’s supported proposal and the owner’s authorization. A recommendation does not itself authorize a price change.

Price reduction / price repositioning A change in asking price or broader marketing position. Explain the evidence, buyer response, and expected effect; obtain required approval.

Marketing time / exposure time Marketing time looks forward to an expected sale period; exposure time looks backward to assumed prior market exposure supporting a valuation. Define the assignment’s terms.

Quick-sale value / liquidation value A valuation under a specified shortened period or constrained sale premise. These labels have no universal discount; state the assumptions and required time frame.

Offer matrix / offer summary A comparison of price, financing, cash, contingencies, concessions, timing, and net. Preserve complete offers and avoid omitting material terms.

Concession / seller credit / repair credit A seller-funded benefit or credit, subject to contract, owner approval, and financing limits. The highest gross price may not produce the strongest net.

Owner-occupant / investor / first-look period A primary-residence purchaser, an investment purchaser, and a priority marketing period for eligible buyers. Eligibility and restrictions depend on the owner’s program.

Verbal acceptance / executed contract An informal expression of agreement versus a contract completed under applicable signing and delivery requirements. Confirm the seller’s stated contract-formation process.

Seller addendum / order of precedence Additional seller terms and the rule determining which document controls a conflict. Read all documents together and refer legal interpretation when needed.

Inspection period / contingency / financing condition A due-diligence window and contractual conditions affecting performance or termination. An as-is provision does not automatically delete them.

Closing extension / extension fee / per diem charge An approved later closing and any contractual fee. A contract per diem charge differs from daily interest in a lender payoff.

Final walk-through / final reconciliation / file closeout A preclosing condition check, matching approved financial figures to actual charges, and completing the owner’s records, keys, invoices, and required reports.

Acronym caution: AM, P and P, REO, and other abbreviations may be used differently by clients. Confirm the meaning in the work order and program guide before relying on a familiar shorthand.

HUD / FHA Department of Housing and Urban Development and Federal Housing Administration. FHA insures qualifying loans; a HUD Home is an acquired property, not every FHA-financed house.

VA / USDA Department of Veterans Affairs and U.S. Department of Agriculture. Their housing loan programs and acquired-property processes have distinct requirements.

Fannie Mae / Freddie Mac Separate government-sponsored enterprises involved in mortgage finance. Their servicing guides and REO requirements are not interchangeable.

HomePath / HomeSteps REO marketing programs associated with Fannie Mae and Freddie Mac, respectively. Check the specific listing and current program rules for requirements.

HUD Home Store / registered broker HUD’s property marketing and bidding channel and a broker meeting HUD registration requirements. MLS access alone does not establish authority to submit a HUD bid.

M and M / AM / FSM / MCM HUD Management and Marketing; Asset Manager; Field Service Manager; Mortgagee Compliance Manager. These roles address sale, preservation, and conveyance compliance rather than one universal agent function.

Conveyance condition / conveyance exception The required condition for transferring a property under a program, and an authorized departure. Ordinary retail sale condition may use a different standard.

Insured / insured with escrow / uninsurable HUD listing classifications concerning FHA financing eligibility and repair needs. They are not guarantees of condition; confirm the listing classification and lender requirements.

Exclusive period / extended period HUD marketing periods providing different bidding eligibility. Do not assume an investor can bid during an owner-occupant priority period.

REO addendum / agency form / program certification Owner or program documents imposing transaction requirements. Complete the correct version and verify certifications rather than treating them as routine boilerplate.

RESPA / Regulation X / TILA / Regulation Z Real Estate Settlement Procedures Act and its implementing regulation; Truth in Lending Act and its implementing regulation. They address different mortgage and servicing requirements.

FDCPA / CFPB / NMLS Fair Debt Collection Practices Act; Consumer Financial Protection Bureau; Nationwide Multistate Licensing System. Applicability, oversight, and licensing depend on the role and activity.

Preforeclosure is not REO The owner receives a foreclosure notice while still holding title. The listing is a homeowner sale, potentially a short sale, until ownership actually changes.

Price is not net A $400,000 offer less $30,000 in approved costs leaves $370,000 available for debt payments. If one loan’s payoff is $450,000 and it receives the full $370,000, the simplified shortage is $80,000. Other liens, interest, and charges change the result.

Release is not forgiveness A creditor may agree to release its lien so a sale can close. The approval must also address any remaining personal obligation; do not infer a waiver from the release alone.

As-is is not as-repaired A BPO might support $300,000 in current condition and $340,000 after specified work. A $25,000 repair estimate does not make those values interchangeable or guarantee a $15,000 profit.

Submitted is not approved An offer and short-sale package have been sent, but the scheduled foreclosure sale still requires separate verification. Document the responsible party’s confirmation of any postponement.

Definitions are paraphrased for agent training. Official references checked October 28, 2026. These sources support the core concepts; client-specific operational terms may differ.

CFPB mortgage key terms
https://www.consumerfinance.gov/consumer-tools/mortgages/answers/key-terms/

CFPB foreclosure process
https://www.consumerfinance.gov/ask-cfpb/how-does-foreclosure-work-en-287/

CFPB loss mitigation terminology
https://www.consumerfinance.gov/ask-cfpb/i-got-a-letter-from-my-mortgage-servicer-about-my-application-for-help-to-prevent-foreclosure-of-my-mortgage-can-you-help-me-understand-some-of-the-terms-en-1807/

CFPB short sale and deficiency waiver
https://www.consumerfinance.gov/ask-cfpb/what-is-a-short-sale-en-290/

Fannie Mae glossary of B terms
https://selling-guide.fanniemae.com/glossary/b

IRS Topic 431 on canceled debt
https://www.irs.gov/taxtopics/tc431

CFPB servicing rules and escrow FAQs
https://www.consumerfinance.gov/compliance/compliance-resources/mortgage-resources/mortserv/mortgage-servicing-faqs/

Fannie Mae servicing responsibilities
https://servicing-guide.fanniemae.com/svc/a2-1-01/general-servicer-duties-and-responsibilities

U S Courts bankruptcy basics
https://www.uscourts.gov/court-programs/bankruptcy/bankruptcy-basics

Nevada deeds of trust and California foreclosure guide
https://www.leg.state.nv.us/NRS/NRS-107.html | https://selfhelp.courts.ca.gov/nonjudicial-foreclosures