Deed in lieu of foreclosure: An arrangement that allows the homeowner to turn over the deed of the house, stopping the foreclosure process and canceling the mortgage debt.
Foreclosure: The legal process by which a creditor (a bank or servicer) with a claim on real estate forces a sale of the property.
Forbearance: A suspension in payments allowed by the lender for a period usually no longer than a few months. The payments have to be made up later.
Notice of Default: A legal notice from the lender giving the homeowner three months to make up past payments.
Notice of Trustee Sale: A legal notice indicating the final stage in the foreclosure process. A trustee sale generally specifies the date when the property in question will be auctioned. Foreclosure process is complete when the property is sold at auction or ownership otherwise reverts back to the lending institution.
Reinstating a mortgage: Bringing a mortgage back on track by taking care of past payments, plus late fees and interest.
Repayment plan: Usually a plan that allows the homeowner to make up missed payments over time.
Subprime Loan: Mortgage loans that have higher costs (such as higher interest rates) and more risk than standard prime loans. Subprime loans were generally intended for applicants with poor credit histories, high loan-to-value ratios, or other credit risk characteristics that would disqualify them from lower cost, prime-rate loans.