Glossary

This real estate and foreclosure glossary of terms and phrases is alphebetical, sinply click the letters below to be taken to that section.

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• Abandonment: Situation in which homeowner leaves house with no intention to return.
• Abstract Of Judgment: Summary of a judgment in a lawsuit; includes who won, who lost, amount owed, the court making the decisions, date of judgment, and winning attorney. Once recorded (filed with county clerk or recorder), it creates a general lien on judgment debtor's property that's usually discovered by title company in conjunction with property sale. Most title companies require lien be paid as a condition of insuring resale.
• Acceleration Clause: Part of trust deed or mortgage that gives lender right to call/demand all money owed as due and payable immediately in the event a specific event (such as a sale) occurs.
• Acceptance: When seller's or agent's principal agrees to terms of the agreement of sale, approves negotiation on the part of agent, and acknowledges receipt of deposit.
• Accrued Items of Expense: Incurred expenses not yet payable; seller's accrued expenses credited to purchaser in closing statement.
• Adjustable Rate Mortgage (ARM): Loan with an interest rate that can vary up or down at certain intervals (periods) and within certain limits (caps); loan is secured by house on which lender will foreclose if loan is not paid.
• Alienation: Transferring property from one person to another.
• Alienation/Acceleration/Due on Sale Clause: States that on sale or transfer of certain property, a loan is immediately due and payable.
• All-Inclusive Deed or Trust: Also known as a wraparound contract, a mortgage document that includes amount actually financed as part of a property purchase as well as amounts of any prior deeds of trust.
• Amortization: Repayment of a debt in installments.
• Amortization Mortgage: A debt in which periodic repayments reduce the outstanding principal and pay off current interest charges.
• Answer: the act of a party or an attorney to file an appearance form with the circuit court clerk; in law, a written pleading filed by a defendant to respond to a complaint in a lawsuit filed and served upon that defendant. An answer generally responds to each allegation in the complaint by denying or admitting it, or admitting in part and denying in part. The answer may also com- prise "affirmative defenses" including allegations which contradict the complaint or contain legal theories (like "unclean hands," "contributory negligence" or "anticipatory breach") which are intended to derail the claims in the complaint. Sometimes the answer is in the form of a "general denial," denying everything. The answer must be in typed form, follow specific rules of pleading established by law and the courts, and be filed with the court and served on the defendant within a specific statutory time (e.g. 20 or 30 days after service of the complaint). If the complaint is verified as under penalty of perjury, the answer must be also. There is a fairly steep filing fee for each defendant filing an answer. In short, if served a complaint, one should see a lawyer as soon as possible to prevent a default judgment.
• Appearance: the act of a party or an attorney to file an appearance form with the circuit court clerk; the act of a party or an attorney showing up in court. Once it is established that an attorney represents the person (by filing a notice of appearance or representation or actually appearing), the lawyer may make an appearance for the client on some matters without the client being present. An attorney makes a "special appearance" when he/she is appearing only for the purpose of what is before the court that day-such as arraignment of one charged with a crime. If an attorney makes a "general appearance" he or she is telling the court that the client is definitely his or hers and the court can proceed. In the future that attorney will be required to represent the client. Some appearances are voluntary, but most are compulsory and are by notice to the party or, if represented, to his/her attorney. There are variations on appearance rules in states, federal courts, local court procedures, and according to the desires of particular judges.
• Apportionment: Adjustment of income, expenses, or carrying charges on real estate, usually computed to the date of closing of title so seller pays all expenses to that date and buyer assumes all expenses after that.
• Appraisal: Estimate of property's value as made by a trained, licensed professional.
• Appraisal by Comparison: Estimate of property value made by comparing sale prices of similar properties in the same area.
• Appurtenance: Something outside of a property but belonging to the land and adding to its greater enjoyment, such as a right-of-way, barn, or dwelling.
• Arrearages: money not paid when due, usually the sum of a series of unpaid amounts, such as rent, installments on an account or promissory note, or monthly child support. Sometimes these are called "arrearages."
• As Is: When a property is sold as is, its seller does not warrant or guarantee the property is free of defects; buyer accepts property in present condition without modification.
• Assessed Valuation: Value placed on property by public officer or board as basis for taxation.
• Assessment: Charge against real estate made by a unit of government to cover a proportionate cost of an improvement such as a street or sewer.
• Assessor: Official who has responsibility for determining assessed valuation.
• Assessor's Parcel Number: Numeral assigned by county tax assessor to identify parcel of real property.
• Assignment: Method or manner by which a right or contract is transferred from one person (the assignor) to another (the assignee).
• Assignment of Rents: Procedure in which borrower gives lender the right to receive rents collected from a tenant in a house owned by borrower.
• Assumes and Agrees to Pay: Clause in deed or related document in which a buyer who takes over payments on a seller's old loan also agrees to pay the old loan; buyer normally receives title and makes payments. Clause is often found in section of document that transfers title from the seller to the buyer; seller may or may not be released from liability.
• Assumption of Mortgage: Occurs when person takes title to property and assumes liability for payment of existing note or bond secured by mortgage against the property.
• Auction: the actual forced sale of real property at a public auction (often on the courthouse steps following public notice posted at the courthouse and published in a local newspaper) after foreclosure on that property as security under a mortgage or deed of trust for a loan that is substantially delinquent. The lender who has not been paid may bid for the property, using his/her/its own unpaid note toward payment, which can result in a bargain purchase.
• Automatic Stay: Court order when bankruptcy is filed that prevents any creditor from attempting to collect any debt from the person who declared bankruptcy; creditors may not undertake foreclosure, repossession, eviction, or seizure, or even call or write the debtor demanding payment, and instead must join all other creditors and go through bankruptcy court to seek any money owed them.

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