Foreclosure attorneys glossary
Short, plain-English definitions of the terms you'll meet when choosing a Foreclosure Attorney provider in Cleveland Metro.
- What is a bona fide error defense?
- A bona fide error defense allows debt collectors to escape FDCPA liability for violations that were unintentional mistakes despite reasonable procedures and safeguards to prevent them.
- What is a cognovit note?
- A cognovit note is a promissory note with a clause that authorizes a creditor to confess judgment against a borrower without a hearing or trial, allowing faster foreclosure proceedings.
- What is a cramdown?
- A cramdown is a Chapter 13 bankruptcy tool that allows a debtor to reduce a secured loan balance down to the property's current market value when the debt exceeds that value.
- What is a deficiency judgment?
- A deficiency judgment is a court order requiring a borrower to pay the shortfall between a foreclosure sale price and the outstanding loan balance; Ohio permits lenders to pursue deficiency judgments on most mortgage loans.
- What is a discharge injunction?
- A permanent court order issued at the end of a bankruptcy case that prohibits creditors from collecting or attempting to collect debts that have been discharged, barring collection activities indefinitely.
- What is a forbearance agreement?
- A forbearance agreement is a temporary arrangement between a lender and borrower that allows the borrower to pause or reduce mortgage payments for a specified period without defaulting on the loan.
- What is a lis pendens?
- A lis pendens is a legal notice filed with the county recorder to record that a lawsuit affecting the title to a property is in progress, such as a foreclosure action.
- What is a means test?
- A means test is a federally mandated calculation that compares a debtor's household income against Ohio's median income to determine whether they qualify for Chapter 7 bankruptcy liquidation or must file Chapter 13 reorganization instead.
- What is a Mini-Miranda warning?
- A Mini-Miranda warning is the federal disclosure that debt collectors must include in their first communication with a debtor, stating that they are attempting to collect a debt and that the debtor has the right to dispute it.
- What is a notice of acceleration?
- A notice of acceleration is a formal letter from a lender to a borrower stating that the entire outstanding loan balance has become due immediately, usually triggered by default on mortgage payments.
- What is a Notice of error?
- A written notice sent by a borrower to a mortgage servicer under RESPA requiring the servicer to investigate and respond to claimed payment misapplication, billing errors, or other servicing mistakes within 30 to 45 days.
- What is a praecipe?
- A praecipe is a formal written request filed with the court that directs the clerk or sheriff to perform a specific administrative or enforcement action, such as issuing an order of sale in a foreclosure proceeding.
- What is a qualified written request?
- A qualified written request (QWR) is a formal written demand a borrower sends to a mortgage servicer under the Real Estate Settlement Procedures Act (RESPA) to dispute account errors, request information about their loan, or challenge servicing practices, with the servicer required to respond within 30 days.
- What is a right of redemption in Ohio foreclosure?
- In Ohio, a homeowner's statutory right to pay the full debt owed (principal, interest, costs, and attorney fees) at any time before the sheriff's sale is confirmed to stop the foreclosure and retain ownership of the property.
- What is a sheriff's sale?
- A sheriff's sale is the public auction of a foreclosed property conducted by the county sheriff, typically held at the courthouse steps in Ohio after legal notice requirements are met.
- What is a trial payment plan?
- A trial payment plan is a short-term test period, typically 3 months, during which a borrower makes modified payments to a servicer to demonstrate ability to perform before a loan modification becomes permanent.
- What is a writ of execution?
- A court order that directs the sheriff to seize and sell a debtor's property to satisfy a judgment debt, often used to enforce foreclosure decrees in Ohio.
- What is an adequate protection payment?
- An adequate protection payment is a periodic payment made by a Chapter 13 debtor to a secured creditor (usually a mortgage lender) to compensate for the risk of property value declining while the bankruptcy case is pending.
- What is an automatic stay?
- An automatic stay is an immediate court order that halts foreclosure proceedings, collection efforts, and other creditor actions once a bankruptcy petition is filed.
- What is Chapter 13 plan confirmation?
- Chapter 13 plan confirmation is the bankruptcy court hearing and order approving a debtor's proposed repayment plan to creditors over three to five years.
- What is confirmation of sale?
- Confirmation of sale is the Ohio court order issued after a sheriff's sale that finalizes the transaction, approves the winning bid, and authorizes the transfer of title from the foreclosed property owner to the buyer.
- What is judicial foreclosure?
- Judicial foreclosure is a court-supervised process in which a lender files a lawsuit against a defaulted borrower to obtain a judgment and judicial order allowing the sale of the mortgaged property.
- What is land installment contract forfeiture?
- Land installment contract forfeiture is an Ohio legal remedy allowing a seller to reclaim property and terminate the buyer's interest when the buyer defaults on payments under a land installment contract (contract for deed).
- What is meaningful attorney involvement?
- Meaningful attorney involvement is an FDCPA standard requiring that a licensed attorney personally review a debtor's case file before a collection letter is sent on law firm letterhead, not merely direct non-lawyers to send form letters.