deed of trust: the security instrument which gives the lender a lien on real estate. The deed of trust will also usually describe the conditions of default and the remedies therefor.
equity: the difference between the market value of a property and the debt on the property. For example, if you have a home worth $100,000 and you have an $80,000 mortgage, you have $20,000 equity.
foreclosure: this is usually a remedy that a lender has to take ownership of a property upon the borrower defaulting on a loan. The remedy of foreclosure is usually described in the deed of trust, aka, the security instrument. In Tennessee, non-judicial foreclosures are allowed whereby the lender appoints a trustee and they advertise the foreclosure sale for 3 consecutive weeks in a local newspaper of the county where the property lies. The foreclosure sale will usually be held at the courthouse on the 4th week.
short sale: when a sale of real estate is sold for less than the amount owed on the property. Since the mortgage company is agreeing to less than what they are owed, their consent to the terms of the transaction is necessary.
