Dictionary of Law

foreclosure :: legal definition

Foreclosure - n. the system by which a party who has loaned money secured by a mortgage or deed of trust on real property (or has an unpaid judgment), requires sale of the real property to recover the money due, unpaid interest, plus the costs of foreclosure, when the debtor fails to make payment. After the payments on the promissory note (which is evidence of the loan) have become delinquent for several months (time varies from state to state), the lender can have a notice of default served on the debtor (borrower) stating the amount due and the amount necessary to "cure" the default. If the delinquency and costs of foreclosure are not paid within a specified period, then the lender (or the trustee in states using deeds of trust) will set a foreclosure date, after which the property may be sold at public sale. Up to the time of foreclosure (or even afterwards in some states) the defaulting borrower can pay all delinquencies and costs (which are then greater due to foreclosure costs) and "redeem" the property. Upon sale of the property the amount due is paid to the creditor (lender or owner of the judgment) and the remainder of the money received from the sale, if any, is paid to the lender. There is also judicial foreclosure in which the lender can bring suit for foreclosure against the defaulting borrower for the delinquency and force a sale. This is used in several states with the mortgage system or in deed of trust states when it appears that the amount due is greater than the equity value of the real property, and the lender wishes to get a deficiency judgment for the amount still due after sale. This is not necessary in those states which give deficiency judgments without filing a lawsuit when the foreclosure is upon the mortgage or deed of trust.

See also: deed of trust execution forced sale mortgage notice of default and Related Law Terms ↓

Related Law Terms

abandoned property :: n. property left behind (often by a tenant) intent ... -use. See also: abandon abandonment
abandonment :: n. the act of intentionally and permanently giving ... : abandon abandoned property patent
abduction :: n. the criminal taking away of a person by persuas ... g of children. See also: kidnapping
abstract of judgment :: n. a written summary of a judgment which states ho ... aying the debt. See also: levy lien
abstract of title :: n. the written report on a title search which show ... e also: chain of title title report
acceleration clause :: n. a provision in a contract or promissory note th ... . See also: acceleration assumption
account stated :: n. a statement between a creditor or the person to ... ending on the state. See also: debt
acknowledgment :: n. the section at the end of a document where a no ... me leases and various other papers.
adultery :: n. consensual sexual relations when one of the par ... s and grist for scandal newspapers.
adverse possession :: n. a means to acquire title to land through obviou ... o: possession prescriptive easement
after-acquired property :: n. 1) personal or real property acquired by a debt ... lso: bankruptcy secured transaction
appeal :: 1) v. to ask a higher court to reverse the decisio ... ng, as in "he has filed an appeal."
appurtenant :: adj. pertaining to something that attaches. In rea ... t. See also: easement real property
assess :: v. to set a value on property, usually for the pur ... e place upon sale of real property.
assume :: v. to take over the liability for a debt on a prom ... he assumption. See also: assumption
attachment :: n. the seizing of money or property prior to getti ... bond. See also: writ of attachment
attorney-in-fact :: n. someone specifically named by another through a ... cument. See also: power of attorney
bank :: n. 1) an officially chartered institution empowere ... erred to as "in bank" or "en banc."
bankruptcy :: n. a federal system of statutes and courts which p ... y proceedings trustee in bankruptcy
bar examination :: n. the examination given in each state by either t ... n that district. See also: attorney
basis :: n. the original cost of an asset to be used to det ... ssistance. See also: adjusted basis
Bill of Rights :: n. the first ten amendments to the federal Constit ... ved to the states or to the people.
breach :: 1) n. literally, a break. A breach may be a failur ... breach of trust breach of warranty
bulk sales acts :: n. state laws (spelled out in the Uniform Commerci ... g without paying current creditors.
capital gains :: n. the difference between the sales price and the ... so: basis delayed exchange exchange
cestui que use :: (pronounced ses-tee kay use or setty kay use) n. a ... beneficiary cestui que trust trust
chain of title :: n. the succession of title ownership to real prope ... title conveyance foreclosure title
chattel mortgage :: n. an outmoded written document which made a chatt ... ed by the property. See also: UCC-1
citation :: n. 1) a notice to appear in court due to the proba ... se is not in point." See also: cite
claim :: 1) v. to make a demand for money, for property, or ... the government, it is lawsuit time.
claim against a governmental agency :: n. any time one believes he/she has a right to pay ... orter than other types of lawsuits.
claim in bankruptcy :: n. the written claim filed by persons or businesse ... : bankruptcy bankruptcy proceedings
cloud on title (cloud) :: n. an actual or apparent outstanding claim on the ... ion reconveyance title title report
collateral :: 1) n. property pledged to secure a loan or debt, u ... ral to the Colorado divorce action.
color of title :: n. the appearance of having title to personal or r ... rty based on this "color of title."
commingling :: n. the act of mixing the funds belonging to one pa ... rust accounts for funds of another.
common property :: n. 1) real property owned by "tenants in common," ... e, like parks and national forests.
community property :: n. property and profits received by a husband and ... and distribution separate property
comparative negligence :: n. a rule of law applied in accident cases to dete ... utory negligence damages negligence
condition subsequent :: n. 1) in a contract, a happening which terminates ... Dad Fauntleroy. See also: condition
conditional bequest :: n. in a will, a gift which will take place only if ... rries." See also: bequest executory
consign :: v. 1) to deliver goods to a merchant to sell on be ... or by order of a bankruptcy judge.
consumer protection laws :: n. almost all states and the federal government ha ... rranty product liability securities
contingent fee :: n. a fee to a lawyer which will be due and payable ... epend on the outcome are unethical.
conversion :: n. a civil wrong (tort) in which one converts anot ... the crime of theft. See also: theft
convey :: v. to transfer title (official ownership) to real ... ion conveyance deed grantee grantor
conveyance :: n. a generic term for any written document which t ... r Recorder of Deeds. See also: deed
copyright :: 1) n. the exclusive right of the author or creator ... plagiarism public domain trademark
corporation :: n. an organization formed with state governmental ... ation public corporation securities
court :: n. 1) the judge, as in "The court rules in favor o ... cost and wait of full court trials.
covenant :: 1) n. a promise in a written contract or a deed of ... o compete deed restrictive covenant
creditor's claim :: n. a claim required to be filed in writing, in a p ... e also: claim in bankruptcy probate
d.b.a. :: n. short for "doing business as," when a person or ... that is registered with the state.
deed :: 1) n. the written document which transfers title ( ... veyance deed of trust warranty deed
deed of trust :: n. a document which pledges real property to secur ... : foreclosure mortgage reconveyance
default :: 1) n. failure to respond to a summons and complain ... default judgment notice of default
default judgment :: n. if a defendant in a lawsuit fails to respond to ... See also: complaint default summons
defect :: n. an imperfection, quite often so great that the ... See also: defective defective title
deficiency judgment :: n. a judgment for an amount not covered by the val ... o: foreclosure judicial foreclosure
delivery :: n. the actual handing to another of an object, mon ... rties. See also: contract deed sale
demise :: 1) v. an old-fashioned expression meaning to lease ... r life. 3) n. death. 4) n. failure.
descent :: n. the rules of inheritance established by law in ... on inheritance intestate succession
devise :: 1) v. an old-fashioned word for giving real proper ... so: bequest gift legacy remise will
devisee :: n. a person who receives a gift of real property b ... will. See also: beneficiary legatee
dismiss :: v. the ruling by a judge that all or a portion (on ... nst that party. See also: dismissal
divorce :: 1) n. the termination of a marriage by legal actio ... y separate property spousal support
double jeopardy :: n. placing someone on trial a second time for an o ... that occurred thirty years earlier.
duress :: n. the use of force, false imprisonment or threats ... pardoned by President Jimmy Carter.
easement :: n. the right to use the real property of another f ... rstandings at the time of creation.
eminent domain :: n. the power of a governmental entity (federal, st ... ngs. See also: condemn condemnation
encumbrance :: (incumbrance)n. a general term for any claim or li ... and must be paid for at some point.
equity :: n. 1) a venerable group of rights and procedures t ... ry enjoin equitable injunction writ
equity of redemption :: n. the right of a mortgagor (person owing on a loa ... so: foreclosure mortgage redemption
escalator clause :: n. a provision in a lease or other agreement in wh ... instead of inflation. See also: cap
escrow :: 1) n. a form of account held by an "escrow agent" ... w the deal." See also: escrow agent
exchange :: 1) v. to trade or barter property, goods and/or se ... ins tax. See also: delayed exchange
excusable neglect :: n. a legitimate excuse for the failure of a party ... See also: default default judgment
execution :: n. 1) the act of getting an officer of the court t ... so: death penalty writ of execution
fictitious defendants :: n. when a party suing (plaintiff) is not sure if h ... are not permitted in federal cases.
forcible entry :: n. the crime of taking possession of a house or ot ... ce after having come in peacefully.
foreclosure sale :: n. the actual forced sale of real property at a pu ... dicial sale mortgage sheriff's sale
fraud :: n. the intentional use of deceit, a trick or some ... audulent conveyance intrinsic fraud
free and clear :: adj. referring to the ownership of real property u ... the title has no claim against it.
full faith and credit :: n. the provision in Article IV, Section 1 of the U ... "foreign" (out-of-state) judgment.
garnish :: v. to obtain a court order directing a party holdi ... ed. See also: garnishee garnishment
grandfather clause :: n. 1) a clause in a statute or zoning ordinance (p ... Such laws are now unconstitutional.
grant :: v. to transfer real property from a title holder ( ... deed grantee grantor quitclaim deed
grant deed :: n. the document which transfers title to real prop ... rant grantee grantor quitclaim deed
hearsay rule :: n. the basic rule that testimony or documents whic ... interest dying declaration hearsay
impound :: v. 1) to collect funds, in addition to installment ... cases. See also: forfeit forfeiture
in kind :: adj. referring to payment, distribution or substit ... . See also: distribution trust will
in lieu :: prep. instead. "In lieu taxes" are use taxes paid ... go through the foreclosure process.
in personam :: adj. (in purr-soh-nam) from Latin for "directed to ... here. See also: in rem jurisdiction
interest :: n. 1) any and all, partial or total right to prope ... nal property real property standing
interlocutory decree :: n. a court judgment which is temporary and not int ... ppeared to waste the parties' time.
interrogatories :: n. a set of written questions to a party to a laws ... ing. See also: deposition discovery
joint :: adj., adv. referring to property, rights or obliga ... ncy joint venture tenancy in common
joint and several :: adj. referring to a debt or a judgment for neglige ... ution contributory negligence joint
judgment by default :: n. See also: default judgment ... n. See also: default judgment
judicial foreclosure :: n. a judgment by a court in favor of foreclosure o ... deed of trust foreclosure mortgage
jurisdiction :: n. the authority given by law to a court to try ca ... Superior Court Supreme Court venue
just compensation :: n. 1) in general a fair and reasonable amount of m ... ation make one whole quantum meruit
land :: n. real property, real estate (and all that grows ... See also: real estate real property
law :: n. 1) any system of regulations to govern the cond ... um maritime law natural law statute
lease :: 1) n. a written agreement in which the owner of pr ... triple net lease unlawful detainer
legatee :: n. a person or organization receiving a gift of an ... eficiary devise devisee legacy will
leverage :: 1) n. the use of borrowed money to purchase real e ... e been created by risky leveraging.
levy :: 1) v. to seize (take) property upon a writ of exec ... heriff's sale tax writ of execution
license :: 1) n. governmental permission to perform a particu ... eement. See also: licensee licensor
lien :: n. any official claim or charge against property o ... ord's lien mechanic's lien mortgage
life estate :: n. the right to use or occupy real property for on ... hter, Sadie, will own the property.
lis pendens :: (lease pen-dense) n. Latin for "a suit pending," a ... ob can be penalized by court order.
literary property :: n. the writings of an author which entitles him/he ... as copyrighted. See also: copyright
marital deduction :: n. an estate tax deduction allowed a surviving spo ... community property estate tax trust
market value :: n. the price which a seller of property would rece ... ich are often called "comparables."
marketable title :: n. the title to real property which has no encumbr ... e. See also: contract real property
mechanic's lien :: n. the right of a craftsman, laborer, supplier, ar ... ll sue for the debt. See also: lien
mortgage :: n. a document in which the owner pledges his/her/i ... losure notice of default trust deed
negligence :: n. failure to exercise the care toward others whic ... gence per se res ipsa loquitur tort
no fault insurance :: n: a type of automobile insurance required of car ... ling lawsuits. See also: negligence
nominal party :: n. a defendant or a plaintiff included in a lawsui ... ed. See also: necessary party party
non-conforming use :: n. the existing use (residential, commercial, agri ... eneral plan grandfathered in zoning
not guilty :: n. 1) plea of a person who claims not to have comm ... t guilty by reason of insanity plea
notice :: n. 1) information, usually in writing in all legal ... Thirty-day notice three-day notice
notice of default :: n. a notice to a borrower with property as securit ... notice of default. See also: notice
notice to quit :: n. the notice given by a landlord (owner) to a ten ... h-to-month notice unlawful detainer
nuisance :: n. the unreasonable, unwarranted and/or unlawful u ... evening). See also: public nuisance
option :: n. a right to purchase property or require another ... ng or upon expiration of the lease.
pawn :: v. to pledge an item of personal property as secur ... nsed by the state. See also: pledge
personalty :: n. movable assets (things, including animals) whic ... lso: personal effects real property
petty larceny :: n. a term used in many states for theft of a small ... emeanor in charging and sentencing.
pledge :: v. to deposit personal property as security for a ... ise to do something. See also: pawn
possessory interest :: n. in real estate, the intent and right of a perso ... o: possess possession real property
possibility of a reverter :: n. the potential that the title to a real property ... further issue. See also: reversion
pour over will :: n. a will of a person who has already executed a t ... invalid trust. See also: trust will
prayer :: n. the specific request for judgment, relief and/o ... ee also: complaint default judgment
premises :: n. 1) in real estate, land and the improvements on ... t). See also: real estate structure
prescription :: n. the method of acquiring an easement upon anothe ... ty. See also: prescriptive easement
promissory note :: n. a written promise by a person (variously called ... lso: interest obligee obligor usury
proper party :: n. a person or entity who has an interest (financi ... lf. See also: necessary party party
property :: n. anything that is owned by a person or entity. P ... rty real property separate property
property tax :: n. an annual governmental tax on real property or ... are made. See also: ad valorem tax
protest :: 1) v. to complain in some public way about any act ... dishonored (not paid by the bank).
public trust doctrine :: n. the principle that the government holds title t ... interest has been dubious at best.
quiet title action :: n. a lawsuit to establish a party's title to real ... opposition. See also: notice title
quitclaim deed :: n. a real property deed which transfers (conveys) ... also: convey deed grant deed title
race to the courthouse :: n. slang for the rule that the first deed, deed of ... e also: deed judgment lien mortgage
ransom :: 1) n. money paid to a kidnapper in demand for the ... ive. See also: abduction kidnapping
rape :: 1) n. the crime of sexual intercourse (with actual ... See also: date rape statutory rape
real estate :: n. land, improvements and buildings thereon, inclu ... the future. See also: real property
real estate investment trust :: n. nicknamed REIT, a real estate investment organi ... its upon sale-if there is a profit.
real property :: n. 1) all land, structures, firmly attached and in ... onal property real estate reversion
reconveyance :: n. in those states which use deeds of trust as a m ... conveyance. See also: deed of trust
record :: 1) v. (ree-cored) to put a document into the offic ... eeding race to the courthouse trial
redeem :: v. to buy back, as when an owner who had mortgaged ... so: foreclosure mortgage redemption
relief :: n. generic term for all types of benefits which an ... r possibilities. See also: judgment
remainder :: n. in real property law, the interest in real prop ... ed reversion title vested remainder
rental value :: n. the amount which would be paid for rental of si ... alimony to be paid. See also: rent
resale :: n. selling again, particularly at retail. 2) adj. ... ction of sales tax on retail sales.
restraint on alienation :: n. an attempt in a deed or will to prevent the sal ... enant rule against perpetuities use
restrictive covenant :: n. 1) an agreement included in a deed to real prop ... o: covenant that runs with the land
resulting trust :: n. a trust implied by law (as determined by a cour ... See also: constructive trust trust
retainer :: n. the advance payment to an attorney for services ... e stuck with extensive unpaid fees.
reversion :: n. in real property, the return to the grantor or ... lled "reverter." See also: reverter
robbery :: n. 1) the direct taking of property (including mon ... We've been robbed." See also: theft
satisfaction of judgment :: n. a document signed by a judgment creditor (the p ... ord. See also: abstract of judgment
savings and loan :: n. a banking and lending institution, chartered ei ... vings into the home finance market.
seal :: n. a device which creates an impression upon paper ... e "sealed," but that is rare today.
seduction :: n. the use of charm, salesmanship, promises, gifts ... ry breach of promise date rape rape
seized :: (seised) n. 1) having ownership, commonly used in ... by force. See also: seisin seizure
self-defense :: n. the use of reasonable force to protect oneself ... ndalism. See also: assault homicide
sentence :: 1) n. the punishment given to a person convicted o ... ence restitution suspended sentence
separate property :: n. in community property states (California, Texas ... pouse. See also: community property
service by publication :: n. serving a summons or other legal document in a ... perty. See also: service of process
servient estate :: n. real property which has an easement or other us ... See also: dominant estate easement
sheriff :: n. the top law enforcement officer for a county, u ... ." See also: bailiff sheriff's sale
sheriff's sale :: n. an auction sale of property held by the sheriff ... so: execution forced sale levy writ
shortening time :: n. an order of the court in response to the motion ... e notice is served within 24 hours.
specific performance :: n. the right of a party to a contract to demand th ... artwork. See also: contract prayer
speedy trial :: n. in criminal prosecutions, the right of a defend ... hurt by the waiver. See also: trial
spot zoning :: n. a provision in a general plan which benefits a ... . See also: grandfathered in zoning
spousal support :: n. payment for support of an ex-spouse (or a spous ... but two. See also: alimony divorce
statute of limitations :: n. a law which sets the maximum period which one c ... ies. See also: demurrer laches toll
subject to :: adj. referring to the acquisition of title to real ... : assumption deed of trust mortgage
subordination :: n. allowing a debt or claim which has priority to ... . See also: subordination agreement
substantial performance :: n. in the law of contracts, fulfillment of the obl ... also: contract specific performance
sum certain :: n. a specific amount stated in a contract or negot ... r redecoration of Williams' house."
tax :: n. a governmental assessment (charge) upon propert ... unified estate and gift tax use tax
tenancy by the entirety :: n. joint ownership of title by husband and wife, i ... ee also: community property tenancy
theft :: n. the generic term for all crimes in which a pers ... rglary embezzlement larceny robbery
Thirty-day notice :: n. a notice by a landlord to a tenant on a month-t ... e also: landlord and tenant service
three-day notice :: n. a notice to pay delinquent rent or quit (leave ... nd tenant service unlawful detainer
timely :: adj. within the time required by statute, court ru ... ed on the 61st day is not "timely."
title :: n. 1) ownership of real property or personal prope ... ink slip real property title search
title report :: n. the written analysis of the status of title to ... lso: abstract title title insurance
title search :: n. the examination of county records for the prope ... e escrow lien title title insurance
toll :: v. 1) to delay, suspend or hold off the effect of ... bridge or take passage on a ferry.
trademark :: n. a distinctive design, picture, emblem, logo or ... ing trademark. See also: trade name
trespass :: n. entering another person's property without perm ... for an illegal purpose is a crime.
trust :: n. an entity created to hold assets for the benefi ... testamentary trust trustee trustor
trust deed :: n. another name for a deed of trust, a form of mor ... paid back. See also: deed of trust
Truth in Lending Act :: n. a federal statute which requires a commercial l ... erms and cancel the loan agreement.
undivided interest :: n. title to real property held by two or more pers ... y by the entirety tenancy in common
unlawful detainer :: n. 1) keeping possession of real property without ... Thirty-day notice three-day notice
use :: n. the right to enjoy the benefits of real propert ... ay it is only of academic interest.
use tax :: n. a state tax on goods purchased in another state ... e" tax equivalent to its sales tax.
will :: n. a written document which leaves the estate of t ... will and testament probate testator

Popular Law Searches

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testamentary disposition legal definition :: n. how the terms of a will divide the testator's ( ... named beneficiaries. See also: will
contract of sufferance :: n. a "hold-over" tenancy after a lease has expired ... y tenancy at will unlawful detainer
forthwith legal definition :: adv. a term found in contracts, court orders and s ... mediacy, with no excuses for delay.
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what is to wit in a legal contract :: prep. that is to say. Example: "the passengers in ... tty Bumgartner and Sherry Younger."
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Other Law Terms - F

face amount :: n. the original amount due on a promissory note or ... rein, without calculating interest.
face value :: n. in shares of stock, the original cost of the st ... on the certificate, or "par value."
fact :: n. an actual thing or happening, which must be pro ... dge if he/she sits without a jury).
fact finder (finder of fact) :: n. in a trial of a lawsuit or criminal prosecution ... n facts. See also: question of fact
factor :: n. 1) a salesman who sells in his/her own name on ... ing that contributes to the result.
failure of consideration :: n. not delivering goods or services when promised ... n. See also: consideration contract
failure of issue :: n. when someone dies leaving no children or other ... ildren or other direct descendants.
fair comment :: n. a statement of opinion (no matter how ludicrous ... amation libel public figure slander
fair market value :: n. the amount for which property would sell on the ... so: appraise appraiser market value
fair trade laws :: n. state laws which permit manufacturers or produc ... state constitutions in many states.
fair use :: n. the non-competitive right to use of copyrighted ... for a royalty. See also: copyright
false arrest :: n. physically detaining someone without the legal ... sment. See also: false imprisonment
false imprisonment :: n. depriving someone of freedom of movement by hol ... for damages. See also: false arrest
false pretenses :: n. the crime of knowingly making untrue statements ... orm of theft. See also: fraud theft
family :: n. 1) husband, wife and children. 2) all blood rel ... ting this economic and social unit.
family purpose doctrine :: n. a rule of law that the registered owner of an a ... riving his/her car with permission.
federal courts :: n. the court system which handles civil and crimin ... rans' appeals. See also: bankruptcy
federal question :: n. one basis for filing a lawsuit in federal distr ... ves the federal court jurisdiction.
Federal Tort Claims Act :: n. a statute (1948) which removed the power of the ... diction to federal district courts.
fee :: n. 1) absolute title in land, from old French, fie ... See also: attorney's fee fee simple