a property whose owner has defaulted on the loan payments and whose lender has initiated the foreclosure procedure

Term used to discuss delinquent properties before they go to the foreclosure auction.

A property that has had a Lis Pendens For Mortgage Default filed against it but has not yet been scheduled for Auction.

Period between when a borrower becomes delinquent and the property is foreclosed upon.

FHA loan in which the borrower must not be eligible for other workout options and the property is worth less than the amount owed on the loan. The mortgagor will sell the home for a loss to avoid foreclosure, but the property must be put on the market. The price should be listed for the fair market value and the loan may not have been modified or bankrupt in the past.