Real estate glossary.

A voluntary transfer of property from the homeowner to the lender in exchange for the lender canceling the foreclosure. Used when the property has no equity and the homeowner doesn't want to keep it.

A standard provision in modern mortgages giving the lender the right to demand full loan payoff if the property is transferred without their consent. Sometimes called an alienation clause.

A temporary pause or reduction in mortgage payments granted by the lender during a documented hardship — typically 3 to 12 months. Forbearance does not forgive payments; the missed amount must be repaid when forbearance ends.

The legal process by which a lender forces the sale of a property to recover an unpaid mortgage debt. New Jersey is a judicial foreclosure state — the lender must file a lawsuit and obtain a court judgment before the property can be sold.

A contract combining a residential lease with an option to buy the property at a pre-agreed price within a specified window. The tenant has the right, but not the obligation, to purchase.

A formal notice, recorded with the county clerk, that a lawsuit affecting real estate has been filed. It puts the world on notice that the property's title is subject to a pending legal dispute.

A permanent change to the terms of an existing mortgage — typically a lower interest rate, longer term, or rolling missed payments into the balance — agreed to by the lender to make the loan affordable for a borrower in hardship.

A contract that replaces an existing contract with a new one, releasing the original party from all future liability. Requires written consent of every party involved.

The period between a homeowner's first significant default and the formal start of a foreclosure lawsuit. In NJ, this typically starts when the lender mails the Notice of Intent to Foreclose.

A window after a foreclosure sale during which the former homeowner has a legal right to reclaim the property by paying the sale price plus costs. New Jersey has only a very limited statutory redemption period.

Curing a defaulted mortgage by paying every missed payment, late fee, accumulated interest, and the lender's attorney fees and court costs in a single lump sum. The loan returns to current status as if the default never happened.

A real estate transaction where the seller acts as the lender — receiving the purchase price over time as monthly payments with interest, secured by a mortgage or deed of trust on the property.

A court-ordered auction conducted by the county sheriff to sell a property after a foreclosure judgment. It's the final step in the NJ foreclosure process — the homeowner loses title at the sale.

A real estate sale where the lender accepts less than the full mortgage balance as full settlement of the loan. Used when a homeowner is underwater and wants to avoid foreclosure.

A real estate transaction where the buyer takes title to a property while leaving the existing mortgage in the seller's name. The buyer contractually agrees to keep making the mortgage payments.