Glossary of foreclosure terms: N

National Association of Realtors^® (NAR): Organization that represents over 1 million members, most of whom are real estate agents. Members are known by the trademarked term Realtor^®. www.realtor.org.

negative equity: Situation in which sale of a property would result in the seller owing money because loans secured by the property are greater than its value. See upside down.

net equity: See equity.

net worth: A person's assets owned, minus liabilities owed.

nominal APR: Annual percentage rate stated on loan advertising and agreements; differs from the effective APR in that loan fees are not included in the computation.

nonjudicial foreclosure: Foreclosure that does not involve court system. Typical method of foreclosure of deeds of trust that have a power-of-sale clause. Administration is typically by a trustee. See also judicial foreclosure.

nonmonetary encumbrance: Encumbrance on a property that does not name a monetary amount, but instead describes rights held by parties other than the property's owner. An easement is an example of a nonmonetary encumbrance. See also monetary encumbrance.

notary public: State-commissioned official who's legally qualified to perform certain clerical acts of trust, such as certifying someone's identity or administering an oath.

note holder: Party to whom a borrower is indebted. Might not be the same party as the original lender, as loan paper, or "notes", are often bought and sold.

notice of default (NOD): Legal filing by a lender or its agent that the borrower has failed to fulfill the terms of a loan contract. Sometimes known as "notice of default and election to sell".

notice of levy: Legal document directing the sheriff to enforce a judgment. Often accompanies a writ of sale.

notice of sale (NOS): Legal document delivered to the owner of a foreclosed property, giving details about conditions of the sale, including its expected time and place.

notice of trustee's sale: Notice of sale for a nonjudicial foreclosure.