| Auction: | An open invitation for offers, for the sale of goods or real estate. |
| Auctioneer: | A person licensed by the state who conducts an auction. |
| Back Up Bidder: | Is the second highest bidder. Many mortgagees reserve the right to sell the property to the second highest bidder if the first bidder defaults. |
| Bid Increments: | Acceptable dollar advances as determined by the auctioneer. |
| Buyers Premium: | A percentage of the high bid at an auction which is added to the high bid to determine the purchase price. |
| Creditor: | One who is owed money. |
| Deed: | A legal written instrument that transfers or conveys ownership in real estate. |
| Deed of Release: | Commonly used to free property from a mortgage lien. Also known as a discharge. |
| Default: | Failure to meet a contractual obligation when due. |
| Encumbrances: | A claim or lien on real or personal property. |
| Fair Market Value: | A price agreed upon by a willing buyer and a willing seller. |
| Foreclosure: | A legal procedure by which property pledged as security for a debt is sold by a lender in the event of a default by a borrower. |
| Foreclosure Deed: | Document recorded at Registry of Deeds conveying ownership to high bidder at Mortgagee's Foreclosure Auction. |
| Junior Lien: | Liens recorded after the date of the mortgage being foreclosed on. Technically, wiped out at a forclosure sale. |
| Lien: | A legal claim on one's property for satisfaction of a debt. |
| Memo of Sale: | Sales agreement signed by the successful bidder, the auctioneer, and the seller. Contains the terms of sale. |
| Mortgage: | A legal document pledging real property to cover a debt. |
| Mortgagee: | The individual holding the mortgage. The property is pledged to him as security for a loan. Also known as the lender. |
| Mortgagor: | The property owner who mortgages his/her property as security for a loan. Also known as the borrower. |
| Municipal Lien Certificate: | (MLC) Supplied by city/town municipality to show outstanding real estate taxes, water, sewer or other municipal liens. |
| Personality : | Property that cannot be considered realty. It consists of personal property and possessions, such as household furnishings, tools... |
| Qualified Bidders: | Persons who can bid on a property because they are in possession of the cash or certified funds in the amount of the deposit stated in the auctioneers advertisement and properly registered at the sale. |
| Senior Liens: | Liens recorded before the date of the mortgage being foreclosed on. These liens are the responsibility of the successful bidder. |
| Title: | Legal evidence of the right to posses property. |
| Title Insurance: | Insurance against loss resulting from title defects. |
| ©2001 Auction
Marketing Group, Inc. All rights reserved. |
