Default: Failure to fulfill an obligation or promise to pay a mortgage.
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Foreclosure: the legal proceeding initiated by a creditor to repossess the collateral for a loan that is in default.
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REO, or Real Estate Owned: property that failed to sell at a foreclosure auction and is now owned by a bank. Because of the volume of REOs, a new trend has appeared in which banks do not take title to foreclosed properties, leaving the foreclosed-upon homeowner liable for ordinance violations and related fines.  For more information, see our Articles page or read this article, Who's House is It Anyway?
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Title/Property title: a legal document signed and sealed and delivered to effect a transfer of property and to show the legal right to possess it.
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Under water: Negative equity occurs when the value of an asset used to secure a loan is less than the outstanding balance on the loan (see upside-down mortgage).
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Upside-down mortgage: Negative equity occurs when the value of an asset used to secure a loan is less than the outstanding balance on the loan, i.e. mortgage balance exceeds current home market value.
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Walk-away: Go away from; conscious mortgage default, typically involving abandonment of property.
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Walk away clean: Go away from; conscious mortgage default; however distinguished from typical walk-away, rather than careless abandonment of property, greatest possible property value is maintained through responsible engagement of property managers, causing the least negative impact on the community.
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