What does that mean?

FHA special forbearance: A written repayment agreement between an FHA lender and a borrower. It contains a plan to reinstate an asset that is a minimum of three mortgage payments due and unpaid. The lender is required by the FHA to help the borrower do everything possible to avoid foreclosure.

Loan modification: One or more of the terms of a loan are changed to bring a delinquent mortgage current.

Pre-foreclosure sale: The proceeds of such a sale are accepted as full satisfaction for the mortgage obligation even if it is less than the mortgage balance.

Deed-in-lieu of foreclosure: The borrower voluntarily deeds the property to the lender to avoid foreclosure.

Repayment plan: A formal repayment plan with a lender and is structured to allow the consumer to repay delinquent installments and/or payment advances to bring the mortgage current. Lenders are not required to provide repayment plans.

Assumption: An enforceable "due-on-sale" clause, which can be waived to allow a qualified buyer to assume the mortgage of a delinquent borrower.

Special circumstances: These are special situations involving natural disasters and bankruptcy where an agreement can be worked out with the lender and the borrower.

Special payment arrangements: Allow the borrower to "catch-up" by stretching payments over a set period of time or allowing extra time to make payments on the delinquent amount.

Interest-only payments: A lender or servicer can agree to take interest-only payments by waiving the requirement for principal over a period of time to assist the borrower.

"Short" sale: Lender takes less than what is legally owed, reducing the payoff balance to an agreed upon amount to allow refinancing or sale.

Source: Illinois Association of Mortgage Professionals, Lombard