1099c: the form used to show a debt was forgiven and the IRS accepts it as income for the person being forgiven of the debt 

Charge-off: the term used by creditors when a debt is taken off their books due to non-payment and it also a deduction from credit scores

Consumer Reporting Agency (CRA): Transunion, Equifax and Experian are all CRA's that collect the personal debt data

Creditor: the bank or other financial instituion that lends money

Debtor: the person that borrows money

Debt Management Plan: the debt repayment plan in which creditors can agree to a fixed interest rate over a specific period to help debtors pay them back

Debt Settlement: to negotiate debts with creditors at a fraction or percentage of what is owed

Deed: the legal instrument that shows title ownership of the home as well as any mortgages

Foreclosure: the process of having a home repossessed by the bank

Loss Mitigation: to lessen the amount the bank looses on home loans in default and foreclosure 

Note: the legal instument that shows the terms of the loan; payment frequency, amount, interest rate, etc

Short-sale: to sell a home for less than what is owed to the lender

The advertisers on this site are paid for advertisements.

Recommend this article...