Bankruptcy is a federal court process designed to help consumers and businesses eliminate certain debts or repay them under the protection of the Bankruptcy court. To preserve its assets, a Borrower may file for Bankruptcy protection allowing them the additional time needed to restructure its debts and possibly avoid imminent foreclosure.
A security agreement creating a lien by which title to real property is transferred to a third-party trustee as security for an obligation owed by the Borrower to the Lender. The lien is collateral for the Lender in the event of a Borrower default on the Promissory Note.
A postponement of foreclosure by the lender in which the Lender and Borrower have established a new agreement to make a loan current and/or pay off a loan.
The legal process by which an owner’s right to a property is terminated, usually due to default.
A request from a secured creditor to the Bankruptcy court to release the property from Bankruptcy allowing the Lender to commence foreclosure.
A formal notice to a Borrower declaring that a default has occurred and foreclosure proceedings have commenced.