Insurance & Risk Captive Insurance Self-insurance through a subsidiary insurance company owned by the insured.
Insurance & Risk Coinsurance Penalty A reduction in claim payment when a property is insured for less than its required percentage of value.
Foreclosure & Distressed Cash for Keys A lender’s offer to pay a defaulting owner or tenant to vacate cooperatively.
Foreclosure & Distressed Deed in Lieu A voluntary transfer of property to the lender to avoid foreclosure.
Foreclosure & Distressed Deficiency Judgment A court order making a borrower personally liable for the loan balance after foreclosure sale.
Foreclosure & Distressed Equity of Redemption The borrower’s right to cure default before foreclosure sale.
Foreclosure & Distressed Foreclosure The legal process by which a lender takes ownership of a property after the borrower defaults.
Foreclosure & Distressed Judicial Foreclosure A court-supervised foreclosure required in some states.
Foreclosure & Distressed Lender Owned Another term for REO property — owned by the lender after foreclosure.
Foreclosure & Distressed Loss Mitigation Lender programs aimed at avoiding foreclosure through modification, forbearance, or short sale.
Foreclosure & Distressed Mortgagee in Possession A lender that takes physical control of a property before formal foreclosure.
