Foreclosure & Auction Glossary

A property the lender has taken back after it failed to sell at auction. "Real Estate Owned" homes are sold by the bank and often resemble a standard purchase.

An arrangement where an owner voluntarily transfers the property to the lender to avoid a full foreclosure process.

A court ruling that can hold a former owner responsible for the gap between what was owed and what the property sold for.

Any home under financial or legal pressure — behind on payments, in foreclosure, or facing a forced sale.

The difference between a property's estimated market value and the amount still owed on it. Positive equity is what makes a deal attractive.

The legal process a lender uses to recover a loan balance when an owner stops paying, usually ending in a forced sale of the home.

A legal claim against a property for an unpaid debt — a mortgage, taxes, or contractor bills — that typically must be cleared before a clean sale.

Latin for "suit pending." A public notice that a foreclosure lawsuit has been filed against a property — often the first visible sign of distress.

A formal notice recorded when an owner has missed payments, marking an early stage of the foreclosure timeline.

A recorded announcement that a property is scheduled for auction, including the date, time, and location.

The window after a default notice but before the auction. Owners can still sell or resolve the debt, and buyers can often deal with them directly.

A timeframe in some states during which a former owner can reclaim the property by paying what's owed, even after a sale.

A sale where the lender agrees to accept less than the full mortgage balance, usually to avoid the cost of foreclosure.

A public auction, often court-ordered, where a foreclosed property is sold to the highest bidder.

A claim placed on a property for unpaid property taxes. Severe cases can lead to a tax sale of the home.

An auction conducted by a trustee in states that handle foreclosures outside of court (non-judicial).

When an owner owes more on the mortgage than the home is currently worth — a common driver of distress.