Glossary of Tampa Short Sale and Foreclosure Terms
Are you considering a Tampa short sale for your home? Many people in all areas of the country are doing so in an attempt to keep their home out of foreclosure. The economy is partially to blame and many homeowners now owe more on their homes than they are worth. If a Tampa short sale will help when there is no other alternative in sight, both you and the lender can benefit from this sale.
The ultimate decision on your Tampa short sale will lie with the lender. If you can prove a hardship that is not going to get better within the near future, you may have a good chance of being approved. The lender will weigh the possibilities and their losses in approving a Tampa short sale versus foreclosing on the home and this will influence their decision as to either allow the sale or to foreclose.
Since this is such a confusing time for many and the terms used pertaining to real estate are not always easy to understand, the following glossary may be helpful:
* Adjustable Rate Mortgage (ARM)
A mortgage loan that often starts lower than a fixed rate but can change at any given time. This is usually governed by a change in the Treasury bill rates or the market.
* Advance (Home Saver Advance)
Money advance to pay a loan that is behind.
* Amortize
When regular payments are made in installments over a specific period of time on a loan. When the time is up the loan is paid in full.
* Balloon Mortgage
A home loan that has low interest, but will have one large payment due at the end of the loan.
* Buy-down Mortgage
A home loan that one person pays a large amount on to reduce the amount of the borrower’s monthly payments.
* Collections
When a lender is attempting to collect on payments overdue.
* Convertible Arm
When an adjustable rate mortgage is converted to a fixed rate mortgage during a specific time.
* Deed
The paper listing the owner of a property.
* Deed-in-Lieu
Transferring the title of a property from the borrower to the lender to avoid foreclosure and the borrower does not owe on the property.
* Deferred Payments
The postponement of payments when working with a dealer to keep the home from being foreclosed on.
* Delinquency
Being behind on payments (usually 30 days or more).
* Equity
The ownership amount of the property when all liabilities are taken from the amount.
* Escrow
An account the lender holds for the homeowner who pays insurance and taxes into.
* Escrow Account
The account where escrow funds are held.
* Escrow Analysis
Checking the account to ensure the escrow funds are enough to pay the insurance and taxes when they are due.
*Fixed-Rate Mortgage
When the interest rate stays the same throughout the period of the loan.
* Forbearance
When the lender postpones taking legal action if the borrow and the lender reach an agreement for bringing the payments due up to date.
* Foreclosure
When the property is legally sold by the lender and the amount is used to pay towards the mortgage amount. This is typically when the homeowner become delinquent on the loan.
*Foreclosure Prevention
When the lender and the borrower work together to find a solution to a delinquent loan – presently delinquent or an imminent delinquency.
* Hazard Insurance
Coverage by an insurance company that will pay damage of loss to the home or property.
* Home Equity Line of Credit
A loan using the equity you have in your home to pay for whatever you need it for – a new car, college education or home repairs.
* Interest-Only Mortgage
A mortgage when the borrower only pays the interest on the money borrowed for a certain length of time.
* Investment Property
Property purchased for resale or rental income; not as their primary home.
* Investor
A lender who supplies the loan for the property.
* Lender Placed Insurance
Insurance put on the home by the lender to protect their money.
* Modification
Changes to the original terms of the loan.
* Mortgage
The loan on a property or the legal paper promising the property in exchange for the repayment of the loan.
* Mortgage Insurance
Insurance that keeps the lender from losing their money when a borrower does not repay the loan.
* Pre-foreclosure
When the home is behind in payments and the homeowner works with the servicer to sell the home through a real estate agent before it goes into foreclosure.
* Refinance
Paying off an existing loan by getting another loan which has a lower interest rate.
* Repayment Plan
Payment of the past due amounts on the mortgage by the borrower while still making the regular payments.
* Servicer
The firm that collects the payments on the mortgage, the insurance and taxes and manages the escrow accounts for the borrower.
* Short-Sale
The servicer and the borrower work together to sell a house with the help of a real estate agent to avoid foreclosure.
* Title
A document showing the ownership of a property.
* Voluntary Conveyance
When the borrower signs the title over to the lender to avoid foreclosure and is not liable for the debt any longer.
* Work Out
A loan modification, short sale or forbearance to change the loan and prevent the borrower from foreclosure.
For more information about homeowner assistance programs, please visit our “Find a Local Counselor” page, complete the form and we’ll be happy to assist you further.