Foreclosure and market terms, in plain words
24 terms you'll see in default notices, auction calendars and market reports. Each one starts with a short answer, with Nevada, Utah and Texas rules where they differ and live county numbers for market terms.
Updated November 2026. Plain language, not legal advice.
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How foreclosure works
The filings and steps between a missed payment and a sale.
- Notice of defaultThe recorded filing that starts a non-judicial foreclosure.
- Notice of trustee saleThe public notice that sets the auction date, time and place.
- Trustee saleThe non-judicial foreclosure auction.
- Lis pendensA recorded notice that a lawsuit affects the property.
- Pre-foreclosureThe window between the first default filing and the sale.
- Judicial vs non-judicial foreclosureCourt-ordered sale vs a trustee sale with no lawsuit.
- Deed of trustThe loan document that lets a trustee sell without court.
- ReinstatementCatching up on the past-due amount to stop a foreclosure.
- Redemption periodTime after the sale when the owner can buy the home back.
Buying distressed homes
The ways a distressed home changes hands, and the terms you hear at auctions.
- REO (bank-owned)A home the lender owns after a foreclosure auction.
- HUD homeA foreclosed FHA home sold by HUD.
- Short saleA sale for less than the loan balance, approved by the lender.
- Deed in lieu of foreclosureHanding the home to the lender instead of a foreclosure sale.
- Credit bidThe lender's bid, paid with the debt it is owed.
- Opening bidThe starting price at a foreclosure auction.
- Cash for keysPaying occupants to move out instead of evicting.
Reading the market
The numbers behind buyer's and seller's markets, with live county figures.
- Months of supplyHow long current listings would last at today's sales pace.
- Absorption rateThe share of listings that sell each month.
- Days on marketHow long homes stay listed before they sell.
- List-to-sale ratioSale price as a share of list price.
- Buyer's marketMore homes than buyers. Room to negotiate.
- Seller's marketMore buyers than homes. Less room on price.
- Market scoreOur 0 to 100 buyer's or seller's market reading for any county.
- Pending saleUnder contract, not closed yet.
Put the terms to work
Step-by-step guides for each way to buy a distressed home.
Read the buying guidesIs your city a buyer's or seller's market?
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