A-F, G-L, M-T, U-Z

A - F

BBL
The Borough Block and Lot number. Used in NYC as a way to uniquely identify a specific piece of property. Condos, single and multi family, apartments and even skyscrapers all have a unique BBL. Residential apartments that are not individually owned (this includes coops) do not have their own BBL.

County Clerk / County Recorder Office
The municipal location where all court cases for a given county are recorded and filed.

Deed-in-Lieu of Foreclosure
Where a borrower voluntarily gives (or forfeits) their rights to the property back to the lender.

Deed of Trust
A three party security instrument that conveys the legal title to real property as security for the repayment of a loan. The 3 parties in a Deed of Trust are the borrower, lender and the trustee.

Defendant
the person or party for whom relief or recover is sought in an action or suit. The party that is being sued. Usually the borrower.

Deficiency Judgment
A personal judgment against a borrower for the remaining balance on a loan after a foreclosure sale.

Equity
The value of a homeowner's unencumbered interest in real estate. Equity is computed by subtracting from the property's fair market value the total of the unpaid mortgage balance and any outstanding liens or other debts against the property. A homeowner's equity increases as he pays off his mortgage or as the property appreciates in value. When the mortgage and all other debts against the property are paid in full, the homeowner has 100 percent equity in the property. The property is then known as free and clear.

Fair Market Value
The price that a property would sell for on the open market.

Foreclosure
A legal term that describes the forced sale of property pledged as security for a debt that is in default.

Free and Clear
Ownership of property where it is free from all debts.

G - L

Index Number
A case number assigned as part of the pre foreclosure or foreclosure process, which is used to reference a particular legal action or case.

Judicial Foreclosure
A Foreclosure that is processed by a court action.

Lien
A charge that is levied against real property in order to satisfy a debt.

Legal Description
A formal description of real property used to locate it on government surveys or recorded maps. Usually the legal description can be found at the County Recorder’s office or equivalent.

Lender
A financial institution a private individual who will make finances available to consumers or businesses for borrowing, usually with interest.

Lis Pendens
A recorded notice of a pending lawsuit usually in association with the non-payment of mortgage. Also referred to a “Notice of Pendency.

M - T

Market Value (Tax Basis)
AThis is the market value assigned by a city that is used to compute property taxes. Different cities use different formulas to figure out property taxes. IN many cases the Market Value (Tax Basis) is signficantly different than the price a property might sell for through a real estate agent or through other traditional selling methods.

Mortgage
A written pledge of property that is used as security for the repayment of a loan. A claim against real property given by the buyer to the lender as security for money borrowed.

Mortgage Default
A mortgage or deed of trust is said to be in default when the borrower does not make the payments as agreed upon in the original promissory note. Generally, if the payment is not received by thirty days after the due date, the mortgage is in default. In the event of default, the mortgage may give the lender the right to accelerate payments, take possession and receive rents and start the foreclosure process.

Mortgagor
The borrower in a mortgage agreement. Sometimes called the mortgager.

Non-Judicial Foreclosure
The foreclosure process whereby the a “Power of sale” clause, preauthorized by the borrower exists in a mortgage or deed of trust . A power of sales provision in a mortgage allows the sale of the property to take place in the event the borrower goes into default.

Notice of Sale
A notice, which gives information about a loan that, is in default and where the proceedings are to take place. This notice is usually published and advertised in the county where the property is located as required by state law or as stated in the mortgage documents.

Plaintiff
In foreclosure actions this is the person who brings the lawsuit. This is the party who financed the mortgage that is in default.

Preforeclosure
A process where by a default has taken place. Usually a notice of default will have been filed as a first step. If the default is not cured either a judicial or non judicail proceeding is started and property is subject to foreclosure. Preforeclosure is sometimes known as Lis Pendens(lawsuit pending) in states that conduct judicial proceedings.

Preforeclosure Sale
A procedure in which a lender allows a mortgagor to avoid foreclosure by selling the property for less than outstanding balance of the loan.

Quitclaim Deed
A deed that transfers whatever interest the maker (grantor) of the deed may have in a given property. By accepting such a deed the buyer assumes all the risks. Such a deed makes no warranties as to the validity of a given title, but simply transfers to the buyer whatever interest the grantor has.

REO (Real Estate Owned)
Property, which is in the possession of a lender as a result of foreclosure or forfeiture

Right of Redemption
A borrower’s right to reacquire property lost due to foreclosure.

Title
A legal document that is evidence as to the right to and ownership of real property.

Title Insurance
Protects lenders or borrowers against loss of their interest in a given property due to legal defects in the title. Title insurance insures the status of the state of title to a specific parcel of real property. In exchange for a premium paid, title insurance companies assume the risk that title to a parcel of real estate is as it is stated to be in the policy. A title insurance policy indemnifies the buyer or lender against losses suffered if title to the property is not as the policy states it to be

Trustee
A neutral party who advertises the foreclosure property for sale and conducts the auction to sell said property to the highest bidder. May also be the “Auctioneer”.

Trustee Sale
An auction of real property conducted by the trustee sometimes done on the courthouse steps. Also referred to as a Sheriff’s Sales.

U - Z

Upset Bid
A recorded bid placed after a foreclosure sale has ended that is higher than the bid received at the foreclosure sale.

Upset Price
A pre-established amount, below which the seller is not required to accept the winning bid.