lien. The security interest in a house offered so you’re able to a home loan company or other creditor that may be redeemed whether your financing was not repaid considering agreed terms and conditions. Basic liens features very first call on the house. 2nd and you will after that liens stand behind and they are smaller secure than just the first (we.elizabeth., they merely get money or no finance come pursuing the basic lien proprietor was completely paid).
loan mod, otherwise mod. A loss minimization device in which the financial adjustment the first terms of home financing about unpaid borrower’s choose so that the https://paydayloanalabama.com/vernon/ borrower can resume and come up with monthly payments. Loan improvement often lose losings and tend to be lesser having servicers and you can buyers than just foreclosures, that are time-consuming and you may high priced. Improvement is extend the definition of of one’s financing, slow down the rate of interest, slow down the principal (often because of principal forgiveness or dominant forbearance), otherwise a combination of the three.