An assignment of rents is a legal agreement transferring the right to collect rent or income generated by a property from the borrower to the lender in the event of a default on the mortgage.
In real estate, default refers to the failure to fulfill an obligation or promise, or to perform specified actions as agreed upon in a contract. This term is frequently used in scenarios involving mortgages or leases where the borrower or tenant fails to meet the terms agreed upon.
A default point in real estate refers to the critical juncture at which a borrower fails to meet their financial obligations, resulting in potential foreclosure or other legal actions. It is conceptually similar to the break-even point in financial analysis.
Real estate that is under foreclosure or impending foreclosure due to insufficient income production, leading to negative cash flow or default on mortgage payments.
Equity of Redemption refers to the right of a property owner to reclaim their property even after defaulting on a mortgage, by paying off the due amounts before the foreclosure is finalized.
A foreclosure sale is the public auction of a mortgaged property following the foreclosure of the loan secured by that property. This process is designed to recoup the unpaid loan balance through the sale of the collateral property.
Jeopardy in real estate refers to the risk or danger of losing a property, typically due to default on a loan or failing to meet certain contractual obligations, leading to potential foreclosure or other legal actions.
A procedural step requiring mortgage lenders to publicize their intention to foreclose on a property due to a borrower's default. This notice is meant to inform the public and the property owner of the impending foreclosure action.
The redemption period is the time during which a former owner can reclaim their foreclosed property by paying off the debt and any associated legal fees.
Statutory foreclosure is a foreclosure process that is conducted according to statutory laws, without supervision by the courts. This is in contrast to judicial foreclosure, which involves court intervention and oversight.
Strict foreclosure is a legal process wherein the mortgagee has the right to take possession of the mortgaged property directly if the mortgagor defaults on the mortgage agreement. This type of foreclosure is infrequently utilized in modern real estate markets.
A trustee's sale is a type of foreclosure sale conducted by a trustee under the stipulations of a deed of trust, where the property is auctioned off to recover the owed debt.
