Foreclosure attorneys glossary
Short, plain-English definitions of the terms you'll meet when choosing a Foreclosure Attorney provider in Cape Coral Metro.
- What are surplus funds in a foreclosure?
- Surplus funds are the remaining proceeds from a foreclosure sale after all debts, liens, and costs are satisfied, to which the former homeowner may have a legal claim.
- What is a Chapter 13 plan confirmation?
- A Chapter 13 plan confirmation is the court proceeding where a bankruptcy judge approves or denies a debtor's proposed three-to-five year repayment schedule for reorganizing debts and curing mortgage arrears.
- What is a deed in lieu of foreclosure?
- A deed in lieu of foreclosure is a voluntary agreement in which a borrower transfers the property title directly to the lender in exchange for forgiveness of the mortgage debt, avoiding a formal foreclosure judgment.
- What is a deficiency judgment?
- A deficiency judgment is a court order that allows a lender to pursue a former homeowner for the unpaid balance remaining after a foreclosure sale when the sale proceeds fall short of what is owed on the mortgage.
- What is a forbearance agreement?
- A forbearance agreement is a temporary arrangement where a lender agrees to reduce, suspend, or pause mortgage payments for a specified period while the borrower faces financial hardship, with the understanding that payments resume or are caught up later.
- What is a lis pendens?
- A lis pendens is a recorded notice that alerts the public a lawsuit affecting a property's title is pending, commonly filed by lenders when foreclosure proceedings begin in Florida.
- What is a means test?
- A means test is a court-mandated income and expense calculation that establishes whether a bankruptcy filer has sufficient disposable income to repay debts through a Chapter 13 plan or qualifies for debt discharge under Chapter 7.
- What is a mortgage assignment?
- A mortgage assignment is the recorded transfer of a mortgage debt from one lender or investor to another party, documented in the public record.
- What is a mortgage servicer?
- A mortgage servicer is the company authorized to collect loan payments, manage escrow accounts, handle delinquencies, and administer the loan on behalf of the investor or note holder who actually owns the mortgage.
- What is a notice of default?
- A notice of default is the formal written notice sent by a lender to a borrower stating that the borrower has failed to make required mortgage payments and is in breach of the loan agreement, which must precede acceleration and foreclosure suit.
- What is a promissory note?
- A promissory note is a signed written promise by a borrower to repay a specific loan amount to a lender, typically at a stated interest rate and payment schedule.
- What is a right of redemption?
- The right of redemption is the statutory period in Florida during which a homeowner can pay off the full outstanding debt to reclaim their property after a foreclosure judgment but before the foreclosure sale is conducted.
- What is a short sale?
- A short sale is the sale of a property for less than the outstanding mortgage balance, approved by the lender as an alternative to foreclosure.
- What is an acceleration clause?
- An acceleration clause is a mortgage contract provision allowing a lender to demand immediate repayment of the entire outstanding loan balance if the borrower defaults on payments.
- What is an automatic stay?
- An automatic stay is a federal injunction that stops all creditor collection efforts, foreclosure proceedings, and lawsuits against a debtor immediately upon filing for bankruptcy.
- What is an order to show cause in Florida foreclosure?
- An order to show cause is a court order requiring a homeowner to demonstrate why a foreclosure judgment should not be entered against them by a specific court date.
- What is foreclosure mediation?
- A structured negotiation process in which a borrower and lender meet with a neutral third party to discuss alternatives to foreclosure and reach a mutually acceptable resolution.
- What is homestead exemption?
- A Florida constitutional protection that shields the primary residence from most creditor claims and judgment liens, though mortgages and property taxes remain enforceable.
- What is judicial foreclosure?
- Judicial foreclosure is a court-supervised process in which a lender files a lawsuit against a borrower to recover a mortgaged property due to default, ending in a judge's judgment and potential sale.
- What is loss mitigation?
- Loss mitigation is the set of options a lender offers to a borrower facing payment difficulties, designed to keep the borrower in the home and avoid foreclosure.
- What is RESPA?
- The Real Estate Settlement Procedures Act is a federal law that regulates loan servicer conduct during mortgage default and foreclosure, including requirements for acknowledging borrower inquiries, correcting servicer errors, and providing loss mitigation options.
- What is standing to foreclose?
- Standing to foreclose is the legal requirement that a plaintiff prove it owns the mortgage note or holds the right to enforce it before a Florida court will hear a foreclosure case.
- What is the Fair Debt Collection Practices Act?
- The Fair Debt Collection Practices Act (FDCPA) is a 1978 federal law that restricts how third-party debt collectors can pursue consumers and establishes penalties for violations including harassment, deceptive practices, and abusive contact.
- What is the Truth in Lending Act?
- The Truth in Lending Act (TILA) is a federal law requiring lenders to clearly disclose the terms, costs, and conditions of credit to borrowers before they sign a mortgage or loan agreement.