Foreclosure attorneys glossary
Short, plain-English definitions of the terms you'll meet when choosing a Foreclosure Attorney provider in Columbia, SC.
- What is a Chapter 13 plan?
- A Chapter 13 plan is a court-approved repayment schedule that allows homeowners in bankruptcy to reorganize their debts and catch up on missed mortgage payments over a three- to five-year period.
- 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 amount owed on the mortgage.
- What is a forbearance agreement?
- A forbearance agreement is a temporary arrangement in which a lender allows a borrower to reduce or suspend mortgage payments for a set period, typically 3 to 12 months, without defaulting on the loan.
- What is a foreclosure sale?
- A foreclosure sale is the public auction of a property at the courthouse steps (or online venue) by the sheriff or court officer after a lender has completed legal foreclosure proceedings in South Carolina.
- What is a lis pendens?
- A lis pendens is a recorded legal notice stating that litigation affecting title to real property is pending, which clouds the title and prevents sale or refinancing until the suit is resolved.
- What is a loan modification?
- A loan modification is a permanent restructuring of a mortgage's interest rate, term length, or principal balance agreed to by a lender and borrower to make payments affordable and avoid default.
- What is a master in equity?
- A master in equity is a South Carolina judicial officer appointed at the county level who hears and decides equity cases, including residential and commercial foreclosure proceedings.
- What is a mortgage assignment?
- A mortgage assignment is the legal transfer of a home loan and the right to collect payments from one lender or investor to another, documented through a recorded deed.
- What is a notice of default?
- A notice of default is the formal written notice a mortgage lender sends to a borrower when payments are past due, triggering the start of the foreclosure process under South Carolina law.
- What is a promissory note?
- A promissory note is a signed written promise by a borrower to repay a loan at a specified rate and time, distinct from the mortgage or deed of trust that pledges property as security for the debt.
- What is a proof of claim?
- A formal document a mortgage lender files in bankruptcy court to assert the amount owed on a debt and establish its right to receive payment from the debtor's bankruptcy estate.
- What is a relief from stay motion?
- A relief from stay motion is a request filed by a lender in bankruptcy court to terminate the automatic stay and allow foreclosure to proceed on a property.
- What is a servicer?
- A servicer is a company hired to collect monthly loan payments, process escrow accounts, handle customer service, and manage loan administration on behalf of the note holder or investor who actually owns the debt.
- What is a show cause hearing?
- A show cause hearing is a court proceeding in which a homeowner can contest a foreclosure judgment or prevent a scheduled sale by presenting arguments to a judge, who then decides whether the foreclosure should move forward.
- What is an automatic stay?
- An automatic stay is a federal court order that immediately stops foreclosure, eviction, and creditor collection efforts when a debtor files for bankruptcy protection.
- What is an order of foreclosure and sale?
- A court judgment that authorizes a lender to sell mortgaged property to satisfy an unpaid debt following borrower default.
- What is an upset bid?
- An upset bid is a higher offer made after a foreclosure auction concludes but before the sale is confirmed, allowing a new bidder to top the original winning price in South Carolina.
- What is confirmation of sale?
- Confirmation of sale is the court's final approval of a foreclosure auction result, which in South Carolina occurs after an upset bid period during which a higher bid can still be placed to overturn the auction outcome.
- What is equity of redemption?
- Equity of redemption is an equitable right that allows a borrower to pay off the full mortgage debt and reclaim the property after default but before the foreclosure sale is finalized.
- What is judicial foreclosure?
- Judicial foreclosure is a court-supervised process in which a lender files a lawsuit to foreclose on a property, requiring the borrower to be formally served and heard before the lender can sell the property.
- What is loss mitigation?
- Loss mitigation is the lender's process of evaluating and offering alternatives to foreclosure, such as loan modifications, repayment plans, or forbearance agreements, typically handled by a dedicated department that reviews borrower applications.
- What is standing to foreclose?
- Standing to foreclose is the legal requirement that a party must demonstrate it holds the promissory note and mortgage before a court permits foreclosure on a property.
- What is the Fair Debt Collection Practices Act?
- The Fair Debt Collection Practices Act (FDCPA) is a federal law that prohibits debt collectors from using abusive, unfair, or deceptive practices when collecting debts, including mortgages.
- What is the right of redemption?
- The legal right allowing a borrower to reclaim property after foreclosure by paying the full debt amount owed, often within a court-set period.