B
Beneficiary Deed
A Missouri deed that transfers property to a named beneficiary upon the owner's death, without going through probate. Also called a "Transfer on Death" (TOD) deed. The owner retains full control during their lifetime and can revoke or change the beneficiary at any time. Governed by RSMo §461.025.
Breach Letter
A formal notice from a mortgage lender informing the borrower they are in default on their loan. In Missouri, most deeds of trust require this notice before foreclosure can begin. It typically gives 30 days to cure the default by paying the past-due amount.
C
Chain of Title
The complete history of a property's ownership, from the original grant to the current owner. A "broken" chain of title means there's a gap or defect in the ownership records that must be resolved before the property can be sold with clear title.
Cloud on Title
Any claim, lien, encumbrance, or defect that affects the ownership of a property and may impair the owner's ability to sell. Examples include unreleased mortgages, unpaid tax liens, judgment liens, or errors in recorded documents.
Collector's Sale (Tax Sale)
An annual auction conducted by the county collector to sell properties with delinquent property taxes. In Missouri, owners typically have a 1-year redemption period after the sale to reclaim their property by paying all taxes, penalties, and interest. Governed by RSMo Chapter 140.
D
Deed in Lieu of Foreclosure
A voluntary transfer of property ownership from the borrower to the lender to satisfy a mortgage debt and avoid foreclosure. The lender must agree to accept the deed. This can be faster than foreclosure and may have fewer credit impacts, but doesn't always eliminate deficiency liability.
Deed of Trust
The security instrument used in Missouri (instead of a traditional mortgage) that involves three parties: the borrower (trustor), lender (beneficiary), and a neutral third party (trustee). If the borrower defaults, the trustee can sell the property at a trustee sale without court involvement.
Deficiency Judgment
A court order requiring a borrower to pay the difference between what they owed on a mortgage and what the property sold for at foreclosure. Missouri allows deficiency judgments in both judicial and non-judicial foreclosures. For example, if you owed $200,000 and the home sold for $150,000, the lender could sue for the $50,000 difference.
E
Equitable Interest
A beneficial interest in property based on fairness principles rather than legal title. For example, an heir may have an equitable interest in inherited property before the estate is formally distributed through probate.
F
Foreclosure
The legal process by which a lender takes ownership of a property when the borrower fails to make mortgage payments. Missouri is primarily a "non-judicial" foreclosure state, meaning foreclosures typically proceed through trustee sales without court involvement.
H
Heir Property
Real estate inherited by multiple family members, often without a will, where no single heir has clear legal title. This creates a "tenancy in common" situation where any heir can force a partition sale. Heir property is common in families where property passed informally across generations.
HUD Pre-Foreclosure Sale (PFS)
HUD's official short sale program for FHA-insured mortgages. Allows homeowners to sell their property for less than what is owed and avoid foreclosure if they meet hardship and delinquency criteria. As of 2026, HUD introduced a credit score threshold for the first time: borrowers with a score at or below 620 who are 90+ days delinquent qualify for a Streamlined PFS (fast-tracked approval). Borrowers above 620 go through the Standard PFS review requiring full financial analysis. The 620 score does not disqualify anyone — it only determines the review path. Sources: hud.gov/helping-americans/fha-loss-mitigation.
I
Intestate Succession
The legal process that determines who inherits property when someone dies without a valid will. Missouri law (RSMo §474.010) specifies the order of inheritance: spouse, then children, then parents, then siblings, and so on.
L
Land Tax Sale
A tax sale for properties that have been tax-delinquent for multiple years (typically 3+ years). Unlike regular collector's sales, land tax sales may have different redemption rules and are often handled by the Missouri Land Trust in some areas.
Letters Testamentary
A document issued by the probate court that authorizes the executor named in a will to act on behalf of the estate. This document is required to transfer real estate, close bank accounts, and handle other estate matters.
Lien
A legal claim against property that must be paid when the property is sold. Common types include mortgage liens, tax liens, judgment liens, mechanic's liens, and HOA liens. Liens are recorded at the county recorder's office.
Lis Pendens
A recorded notice that litigation is pending that affects title to real property. It warns potential buyers that any interest they acquire may be subject to the outcome of the lawsuit.
P
Partition Action
A lawsuit filed by one co-owner to force the division or sale of jointly-owned property. In Missouri, if the property cannot be physically divided, the court will order it sold and the proceeds divided among the owners.
Probate
The court-supervised legal process of administering a deceased person's estate, including validating the will (if any), paying debts, and distributing assets to heirs. In Missouri, probate is required to transfer real estate unless the property was held in a trust or had a beneficiary deed.
Q
Quiet Title Action
A lawsuit filed to establish clear ownership of property and eliminate any competing claims. Often used to clear title defects, resolve boundary disputes, or remove old liens that should have been released.
Quit Claim Deed
A deed that transfers whatever interest the grantor has in a property, without any warranties or guarantees about the quality of the title. Often used between family members or to clear up title issues, but provides no protection if there are title defects.
R
Redemption Period
The time after a foreclosure or tax sale during which the original owner can reclaim the property by paying the full amount owed plus fees and interest. In Missouri: Tax sales typically have a 1-year redemption period; foreclosures have limited redemption rights that depend on who purchases the property.
Reinstatement
Bringing a delinquent mortgage current by paying all past-due amounts, late fees, and legal costs. In Missouri, you generally have the right to reinstate your loan until the trustee sale actually occurs, though some deeds of trust limit this right.
S
Short Sale
A sale of property for less than the amount owed on the mortgage, with the lender's approval. The lender agrees to accept less than full payment to avoid the costs of foreclosure. May still result in deficiency liability unless the lender provides written release. For FHA loans, short sales are handled through HUD's Pre-Foreclosure Sale (PFS) program — see that entry for details on the 2026 credit score threshold changes.
Small Estate Affidavit
A simplified process in Missouri for estates valued at $40,000 or less that allows heirs to transfer assets without full probate. For real estate, specific requirements must be met and the affidavit must be recorded with the county.
T
Tenancy in Common
A form of co-ownership where each owner has an undivided interest in the whole property. Owners can have unequal shares, and each owner's share passes to their heirs (not the other owners) upon death. Common in inherited property situations.
Title Insurance
An insurance policy that protects the property owner or lender against losses from defects in the title that existed before the policy was issued. Owner's policies protect the buyer; lender's policies protect the mortgage holder.
Trustee (Deed of Trust)
The neutral third party named in a Missouri deed of trust who holds legal title to the property as security for the loan. If the borrower defaults, the trustee has the power to sell the property at a trustee sale. Usually a title company or attorney.
Trustee Sale
A public auction of property to satisfy a defaulted deed of trust in Missouri. Must be preceded by published notice (20+ days). Typically held at the county courthouse. No court involvement required. The highest bidder receives a trustee's deed.
W
Warranty Deed
A deed that guarantees the seller has clear title and the legal right to sell the property. The seller promises to defend against any claims to the title. Provides the most protection to buyers and is standard in most residential real estate transactions.