Terms of Foreclosure and Their Definitions!

The Terms of Foreclosure and their definitions will help you understand the foreclosure process and better handle the situation you are in or are about to experience. Get a step ahead of the lenders by understanding what's going on and how to deal with it.

Most people enter a foreclosure blind, not knowing anything about the process. By that time, it's almost too late to figure out what's going on and you are susceptible to scams and expensive legal fees when all you have to do is ask for help.

The first step in learning the process of foreclosure is to learn the terms of foreclosure.

We will keep it as basic as we can so you can understand all of the terms of foreclosure you are learning.

Terms of Foreclosure
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A B C D E F G H I-K L M N-P Q-R S T U-Z

Terms of Foreclosure Beginning With "L"

Land Contract

An agreement used to sell real property that will transfer the ownership of the property, but the title will not transfer until most or all of the purchase price is paid on the land.

Landlord

The person who, being the owner of a property or lot of land, has leased it to another person with a binding contract. 

Lease

An agreement that involves payment of rent for possession of real estate for a specific period of time. This does not transfer ownership nor take the responsibilities away from the true owner of the property.

• Lease Option

A specific lease that contains the right to purchase a property for a specific price during a given time frame if the individual leasing the property so desires.

Lender

A person or company that lends or gives you money to a borrower or someone who doesn't have enough money in their possession to use toward a larger purchase. 

Lien

A claim or charge on a property for payment of some debt, obligation or duty. If you use your property as security for another loan, a secondary lien will show up on your title. If you owe back taxes to the state, this will also show up on your title as a lien.

Life Estate

An estate that has a duration limited to the life of the party holding it. 

Lis Pendens

This term means "legal action pending" and gives notice of an action or proceeding affecting the title of the property. If you head into foreclosure, you will see one of these.

Lot Book Report

A report of a title's record given by a title company that announces any liens or other burdens recorded against a property.

Terms of Foreclosure Beginning With "M"