Glossary of foreclosure terms: F

Fannie Mae: Federal National Mortgage Association, or FNMA. A government-sponsored enterprise created through U.S. legislation to stabilize the mortgage market by giving lenders a venue in which they can sell or buy loans they've made to homeowners. See also Freddie Mac. www.fanniemae.com.

Federal Deposit Insurance Corporation (FDIC): U.S. government corporation that insures bank deposits and has some enforcement powers. www.fdic.gov.

Federal Home Loan Mortgage Corporation (FHLMC): See Freddie Mac.

Federal Housing Administration (FHA): Division of the Department of Housing and Urban Development (HUD) that has several programs to encourage and protect home ownership, most visibly through mortgage insurance. www.fha.gov.

Federal National Mortgage Association (FNMA): See Fannie Mae.

Federal Trade Commission (FTC): Agency of the U.S. government which regulates advertising and some credit issues. www.ftc.gov.

fee-for-service broker: Real estate company whose agents will perform specific services at a specific price. By contrast, traditional real estate agents provide a bundle of services in exchange for a percentage of the property's selling price.

FICO credit score: Assessment of creditworthiness reduced to a single number between 300 and 850. (The average FICO credit score is around 680.) This number is used by lenders to help determine whether a prospective borrower is qualified for a prime loan. "FICO" is a name abbreviation of the company Fair Isaac Corporation.

foreclosure: Repossession and sale of real property by a lender as the result of the borrower's failure to live up to the terms of a loan agreement.

foreclosure sale: Event in which a foreclosed property is offered for sale to the public, typically on the steps of a government building such as City Hall or a courthouse. A foreclosure sale that's the result of a judicial foreclosure is run by a sheriff and known as a sheriff's sale; a foreclosure sale for nonjudicial foreclosures is run by a trustee and is known as a trustee's sale.

for-sale-by-owner: Property that is being offered directly to the market by its owner without representation by a listing agent.

Freddie Mac: Federal Home Loan Mortgage Corporation, or FHLMC. A government-sponsored enterprise created through U.S. legislation to stabilize the mortgage market by giving lenders a venue in which they can sell or buy loans they've made to homeowners. See also Fannie Mae. www.freddiemac.gov.

fully amortize: To pay off a loan entirely via periodic, equal payments throughout the length of the loan. See also interest-only loan.