A dated and signed letter from borrower/seller to your lender authorizing the lender to discuss personal information with your real estate professional. Letter includes real agent's name and contact information, your property address, loan reference number, your contact information.

The final step in the sale of a home where all required documents are signed, funds are disbursed and keys to the home are transferred to the new owner. In some cases, both the buyer and seller (and their representatives) will meet together, perhaps with an attorney or other settlement official as required by state law. A "split" [..]

A mortgage loan that meets the lending standards of Fannie Mae and Freddie Mac, the two major entities that buy mortgages on the secondary market, helping ensure that primary lenders having sufficient funding to make new home loans.

A legal requirement in a contract, often with a time limit, which must be fulfilled for the contract to remain valid. Buyers often include contingencies related to appraisal of the property, ability to obtain financing, approval of inspection results, obtaining clear title to the property, and so on.

The status of a loan, as determined by the lender, indicating that the borrower has missed making one or more regular payments.

The portion of a home's value that is owned by the homeowner. A homeowner's equity is determined by subtracting the amount of any remaining mortgage(s) owed to lenders from the home's fair market value.

Spreadsheet that indicates all household income less all household expenses. Often savings and other assets are indicated as well. Documents to support the calculations may be required, such as bank statements, savings accounts, investments, cash, or receipts and invoices from copies of late bills, various papers to pawned items.

The process through which a lender can sell or repossess (take ownership of) a property in order to recover the amount owed on a defaulted loan secured by the property.

A letter submitted to a lender (as part of a short-sale package) indicating the precise reasons why the borrower can no longer afford to make mortgage payments.

Conducting a short sale with the lender agreeing to accept the proceeds of the sale and "forgive" the remaining amount of mortgage owed. Lien --