Glossary – sensitivestrategist.com

Glossary of Terms

🏚️ FORECLOSURE TERMS (NEW YORK JUDICIAL FORECLOSURE)

Answer
A formal response filed by the homeowner, typically within 20–30 days, either admitting, denying, or explaining the allegations in the complaint.

Bankruptcy
A legal process that can temporarily stop foreclosure and give you time to reorganize or eliminate certain debts — including your mortgage. For homeowners on Long Island, filing for bankruptcy (usually Chapter 7 or Chapter 13) may create an automatic stay, which pauses foreclosure or debt collection while the court reviews your case.

Deed in Lieu of Foreclosure
A homeowner voluntarily transfers the property title to the lender to avoid foreclosure.

Default Judgment
If the homeowner does not respond to the complaint, the court may grant a judgment in favor of the lender without a hearing.

Deficiency Judgment
If the auction sale doesn’t cover the total owed, the lender may sue the homeowner for the balance.

Eviction
The formal legal process to remove a homeowner after the property is sold at auction and title has transferred.

Foreclosure Auction (Public Sale)
A court-ordered public auction where the property is sold—usually on the courthouse steps—to satisfy the mortgage debt. On Long Island, auctions happen outside the Suffolk County courthouse or the Town Hall in Nassau County.

Hardship Letter
A document written by the homeowner explaining why they fell behind on payments — required in many loss mitigation applications.

Lis Pendens
A legal notice filed with the county clerk that a foreclosure lawsuit has been started. It publicly alerts others that the property is in litigation and may affect title.

Loan Modification
A permanent change to the mortgage terms that allows the homeowner to catch up and stay in the home.

Pre-Foreclosure Notice (90-Day Notice)
Required by NY law, this letter informs the borrower that they are in default and that foreclosure may begin if payment isn’t made in 90 days.

Referee
A neutral third party appointed by the court to calculate how much is owed and to oversee the foreclosure sale.

Settlement Conference
Mandatory in NY for residential foreclosures. It’s a court-supervised meeting where both parties attempt to negotiate a resolution, like a loan modification.

Short Sale
When the lender agrees to let the homeowner sell the home for less than the balance owed, usually to avoid foreclosure.

💸 TAX DELINQUENCY TERMS

In Rem Foreclosure
A legal process where a municipality forecloses on a group of tax-delinquent properties via court proceeding.

Redemption Period
The time during which the homeowner can pay off the debt (plus penalties and interest) to reclaim the property — varies by county.

Tax Deed
Issued when a tax lien purchaser forecloses on the lien. It transfers ownership to the buyer after the redemption period ends.

Tax Lien
A legal claim placed on a property by the county or municipality due to unpaid property taxes.

Tax Lien Certificate
A certificate sold at auction giving the buyer the right to collect the delinquent taxes, plus interest, or to foreclose if not paid.

Tax Sale
A public auction where the county sells either the property or the tax lien certificate to recover unpaid taxes.

⚖️ PROBATE & INHERITED PROPERTY TERMS

Administrator
Appointed by the court when there’s no will. Has the same responsibilities as an executor.

Affidavit of Heirship
A sworn statement used to establish rightful heirs when no will is available — used more informally, not a legal substitute for probate.

Estate Sale
The sale of property owned by someone who has passed away, often managed by heirs, an executor, or an investor.

Estate Tax / Inheritance Tax
NY State does not impose inheritance tax, but large estates may owe estate taxes if they exceed certain thresholds.

Executor
A person named in the will to carry out the wishes of the deceased, including transferring real estate.

Heir
A person legally entitled to inherit property from the deceased.

Intestate
Dying without a will. NY intestacy laws determine who inherits the property.

Letters Testamentary / Letters of Administration
Official documents from the court giving the executor/administrator legal authority to act on behalf of the estate.

Probate
The legal process of validating a will and distributing assets, including real estate, under court supervision.

Surrogate’s Court
The court in New York that handles probate cases, including Nassau and Suffolk counties.