Were you just served foreclosure papers? If you’ve never experienced this before, you are likely very confused as to what everything means. There are a lot of terms to understand that you may feel overwhelmed. At Cherry Park Properties, we provide real opportunities to get people out from under the burden of foreclosure in Johnson County KS. In this article, we’ve put together some commonly used terms to help you understand basic foreclosure terminology. 

Understand Basic Foreclosure Terminology

Accelerate 

When a borrower gets behind on a certain amount of payments, the lender can force the borrower to pay the loan amount in full immediately. This is what allows a lender to foreclose on a home. 

Appraisal  

A professional assessment of how much a property is worth. 

Auction 

A foreclosed home will be put up for auction to the public in order to get the highest possible price for the property.   

Bid 

The dollar amount that is offered for a property at the auction. 

Certificate of Sale 

A legal document given to the winner of the foreclosure auction stating their rights to the property once the redemption period is over. 

Chapter 7 Bankruptcy 

Filing chapter 7 bankruptcy allows an individual or company’s property to be auctioned off to cover any debt they owe.  

Chapter 13 Bankruptcy 

Allows an individual with a consistent income to create a plan to pay back their debt over the next three to five years.   

Foreclosure 

The forced sale of a property in order to satisfy a debt. Get a more in-depth description of foreclosure on our blog here 

Lien 

A claim against a piece of property that allows a creditor to take control of the property to settle any debt.  

Notice of Sale 

A notice that states a property will be put up for auction. This notice typically states the property address, date and time of the auction, and/or legal description. 

Right of Redemption 

Sometimes known as redemption rights, the right of redemption allows a borrower in foreclosure to reclaim their home or property if they are able to pay off the debt in a certain amount of time. Learn more about redemptions rights here. 

Sheriff Sale or Trustee Sale 

A sheriff sale in Johnson County KS is a type of auction held by local law enforcement where someone can bid on a property in the final stages of foreclosure. 

 

If you need help understanding the foreclosure process, we are here to answer any of your questions. We have helped thousands of homeowners in Johnson County avoid foreclosure and a sheriff sale. Our goal is to provide a hassle-free experience to every client, no matter what service we provide. Contact us at 913-839-2345 to see how we can get you on the road to recovery.