While most of the Americans are aware of the term ‘Foreclosure’ there seems to be much confusion over what it really means. The mortgage company will want to give their clients some extra time to pay the loan back if the lines of communication are open. If you are only a few months behind on your mortgage payments, you have more options than someone who has received an auction notice from the Sheriff’s Department.

The Realtor can contact the bank to request a short sale. Use PropertyRadar to find absentee owners, cash buyers, free and clear homeowners, and even your competition. This is a little more drastic, but is probably the best solution if meeting the repayments is likely to be an ongoing problem.

This step includes removing negative information from their credit reports, as well as establishing a positive, on-time payment history again, regardless of past history. Also known as “Power of Sale” Foreclosures, Non-Judicial Foreclosures are conducted outside of the court system by either a third party “Trustee” or an attorney.

HAMP Review—The consideration and decision making process a lender goes through when determining whether or not a homeowner qualifies, based on their financial circumstances, for a loan modification under the federal HAMP guidelines. HUD Certified Housing Counselor—An individual with training and expertise in mortgages, foreclosures, and workouts who provides advice and assistance to homeowners with mortgage foreclosure problems.

Escrow—The process of setting aside money, documents, or property for a future transfer to another party when a particular event or condition happens. In executory foreclosure, the bank is required to send any notification to the home owner, prior to starting the foreclosure process.