Foreclosure attorneys glossary
Short, plain-English definitions of the terms you'll meet when choosing a Foreclosure Attorney provider in Greater Hartford.
- What are RESPA servicing rules?
- RESPA servicing rules are federal requirements under the Real Estate Settlement Procedures Act that mandate mortgage servicers respond to payment disputes, process loan modifications, and provide loss mitigation assistance within specific timeframes.
- What are use and occupancy payments?
- Use and occupancy payments are court-ordered amounts a homeowner or occupant pays to remain in a foreclosed property during the pending lawsuit or after judgment, distinct from the mortgage debt itself.
- What is a committee of sale?
- A committee of sale is the officer appointed by the court to conduct a foreclosure sale by auction, responsible for advertising the property, managing the bidding process, and documenting the sale for the court.
- What is a deficiency judgment?
- A deficiency judgment is a court order requiring a borrower to pay the lender the difference between the foreclosure sale price and the total debt owed on the mortgage.
- What is a fair market value hearing?
- A court hearing in a strict foreclosure where appraisers present evidence on a property's fair market value to determine whether a deficiency judgment can be entered against the borrower.
- What is a forbearance agreement?
- A forbearance agreement is a temporary arrangement between a borrower and mortgage servicer in which the servicer reduces or stops collecting payments for a defined period, with the paused amount becoming due later through repayment, modification, or other settlement terms.
- What is a foreclosure mediation program?
- A Connecticut court-run mediation process that allows homeowners facing foreclosure to meet with their lenders and a neutral mediator to negotiate loss mitigation options before the case continues through litigation.
- What is a junior lienholder?
- A junior lienholder is a creditor holding a second or subordinate lien on property (such as a second mortgage, home equity line of credit, or judgment lien) that has lower priority than the first mortgage in foreclosure proceedings.
- What is a law day in foreclosure?
- A law day is the court-ordered deadline specified in a foreclosure judgment by which a homeowner must satisfy the debt or forfeit title to the property.
- What is a lis pendens?
- A lis pendens is a recorded notice stating that a lawsuit affecting title to real property is pending, typically filed at the start of foreclosure proceedings.
- What is a mortgage servicer?
- A mortgage servicer is a company that collects monthly payments and manages a loan's day-to-day operations on behalf of the noteholder who actually owns the debt.
- What is a motion to open judgment?
- A motion to open judgment is a court filing that asks the court to set aside a foreclosure judgment entered against the borrower, typically based on new evidence, fraud, or a settlement agreement reached after judgment but before the sale is finalized.
- What is a notice of intent to foreclose?
- A written notice a mortgage servicer must send to a borrower in Connecticut at least 30 days before filing a foreclosure action, disclosing the default, amount owed, and available loss mitigation options.
- What is a qualified written request?
- A written request sent to a loan servicer under the Real Estate Settlement Procedures Act (RESPA) that requires the servicer to investigate and respond to a borrower's claim of a payment error or account discrepancy within 30 to 60 days.
- What is a receiver of rents?
- A receiver of rents is a court-appointed officer who collects rent payments from tenants occupying a property during foreclosure and holds those funds for the lender's benefit.
- What is a redemption period?
- A redemption period is the legal window between a foreclosure judgment and the law day when a borrower can reclaim the property by paying the full debt, accrued interest, and court costs.
- What is an acceleration clause?
- An acceleration clause is a mortgage note provision that allows a lender to demand the full remaining loan balance become immediately due after the borrower defaults on payments.
- What is an affidavit of debt?
- An affidavit of debt is a sworn statement submitted by a servicer or debt collector in a foreclosure or collection action to establish the outstanding balance and terms of the debt.
- What is equity of redemption?
- Equity of redemption is a homeowner's right to cure the entire loan debt and retain ownership of the property after default but before the foreclosure sale is complete and title passes to the lender.
- What is foreclosure by sale?
- Foreclosure by sale is a Connecticut judicial remedy in which a court orders the mortgaged property sold at public auction under court supervision, typically when the borrower's equity exceeds the outstanding debt.
- What is loan reinstatement?
- Loan reinstatement is the act of paying all past-due mortgage payments, associated fees, and foreclosure costs in a single lump sum to bring the loan current and halt foreclosure proceedings.
- What is loss mitigation?
- Loss mitigation encompasses servicer programs such as loan modification, forbearance, repayment plans, short sales, and deeds-in-lieu that allow homeowners to avoid foreclosure.
- What is standing in foreclosure?
- Standing in foreclosure is the legal right of a party to bring a foreclosure action, which requires proof that the plaintiff owns or legally holds the note and mortgage at the time the suit is filed.
- What is strict foreclosure?
- Strict foreclosure is a Connecticut remedy where a court sets a "law day" and title to the property transfers directly to the lender if the homeowner fails to pay the mortgage debt by that date, bypassing a public sale.