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 FORECLOSURE GLOSSARY
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These greedy so called foreclosure rescuers are only after your equity in your home,
they are heartless and will put you and your family out in the street!
Watch out for Foreclosure Rescuers and their advertising promises to the homeowner
that their foreclosure services are FREE!
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APPLY FREE!
FIX FORECLOSURE FREE!
FRESH START!
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ASSIGNMENT OF DEED OF TRUST: a written document, that transfers
the beneficial interest in a note and deed of trust from one to another.
AUTHORIZATION TO SIGN AS AGENT AGREEMENT: written document given
by a beneficiary authorizing an agent to sign a document (such as a notice
of default).
BANKRUPTCY: a legal proceeding which allows a debtor to discharge
certain debts or obligations without paying the full amount or allows the
debtor time to reorganize his financial affairs so he can fully pay his
debts. (A bankruptcy does not discharge obligations secured by a deed of
trust.)
BENEFICIARY: the lender their successor for whose benefit a trust
is created and to whom the debt is owed.
BID AUTHORIZATION LETTER: your written authorization instructing
the trustee to make the initial opening bid at the trustee's sale on the
lender's behalf. This form will also advise our office of any additional
amounts to be included in the opening bid, (total Debt), such as funds
advanced by you to pay delinquent real estate taxes, etc.
BREACH: the failure without legal excuse to perform any promise
made in a contract. A breach is stated in the notice of default.
CLAIM DATA: an itemization of the trustee's fee and expenses
provided to the lender when the notice of default records and again at
publication. A claim date is furnished for the lenders information and is
not an invoice.
DECLARATION OF DEFAULT: a written document that instructs the
trustee to prepare and record a notice of default and if necessary, to sell
the secured property in order to satisfy the unpaid obligation. This
document does not require the acknowledgment of a notary public or recording
and is merely retained by the trustee in their foreclosure file.
DEED OF TRUST: a written document, describing the real property
that is being given as security for the repayment of an obligation.
EVICTION: See "Unlawful Detainer."
EXTENSION AGREEMENT: an agreement (normally written) giving
additional time to pay an obligation.
FEDERAL TAX LIEN: an obligation to the United States government as
a result of non-payment of taxes.
FORECLOSURE (non-judicial): a popular term used to describe the
procedure followed in enforcing a creditor's rights when a debt secured by
any lien on property is in default; however, the correct term for a
"Foreclosure" involving a deed of trust is a "Trustee's Sale Proceeding."
FORECLOSURE MITIGATION a process
whereby a property owner agrees in writing to allow a third-party to
communicate directly with their lender during the process of foreclosure.
This rapidly growing service segment is used to assist homeowners with
saving their home from foreclosure through reinstatement, remodification
and/or other potential options.
ENDORSEMENT/DATE DOWN: A continuation of the trustee's
sale guarantee policy which reports any changes in the status of ownership
of the property being foreclosed. Such "date downs" are requested from the
title company prior to publishing the notice of trustee's sale and on the
morning of the trustee's sale.
INVALID: not legally sufficient; no binding force.
JUNIOR LIEN: a legal claim upon real property recorded subsequent
(or recorded prior but has subordinated) to another legal claim upon the
same real property.
LIMITED POWER OF ATTORNEY: a recorded document which authorizes
someone to act as attorney-in-fact in a specific manner for someone else.
LIS PENDENS: a recorded notice of pending legal action, which
notifies prospective purchases and encumbrances that any interest acquired
by them in a property litigation is subject to the decision of the court.
MODIFICATION AGREEMENT: a written document, signed by the
beneficiary and the borrower that alters the terms of either the note of
deed of trust.
NON-MILITARY AFFIDAVITS: a sworn statement, in writing from the
beneficiary or his agent which declares that the property owner is not
entitled to any rights under the Soldier's and Sailors Civil Relief Act of
1940.
NOTE: a written document, (promise to pay), that sets forth the
amount of the obligation and the terms of repayment.
NOTICE OF DEFAULT: a written document that gives constructive
notice of a trustor's failure to perform his obligation under a deed of
trust. This document does not require the acknowledgment of a notary public.
NOTICE OF RESCISSION: a written document that cancels or annuls
the effect of a notice of default when a default has been cured
(reinstated). This document does not require the acknowledgment of a notary
public, but must be recorded with the county recorder in the county in which
the property is located.
NOTICE OF TRUSTEE'S SALE: a written document that sets forth the
day, date and time of the trustee's sale, describes the property to be sold
and gives an estimate of the opening bid. This document is prepared by the
trustee and does not require the acknowledgment of a notary public must be
recorded with the county recorder in the county in which the property is
located at least 14 days prior to the scheduled sale date.
We must arrange for the notice of trustee's sale to be published in a
qualified newspaper in the city (or judicial district), in which the
property is located. This publication must appear for 3 consecutive weeks,
with the first publication date being at least 20 days prior to the
scheduled sale.
POSTPONEMENT: a verbal announcement made at the time and place of
the scheduled trustee's sale that establishes a new date for the trustee's
sale. The sale cannot be changed from the originally noticed location.
PRE-PUBLICATION PERIOD: the three month period following the
recording of the notice of default. Prior to 1986 this period was called the
reinstatement period.
PRESENT OWNER, CURRENT OWNER, NEW OWNER: the successor to the
trustor named in the deed of trust and now the owner of the property.
PROMISSORY NOTE: See "Note."
PUBLICATION LETTER: this letter is sent to the lender by the
trustee. When completed and returned, it authorizes the trustee to proceed
with the scheduling of the trustee's sale and preparation of the notice of
trustee's sale.
PUBLICATION PERIOD: this is the interval beginning the day after
the pre-publication period expires and ending with the conducting of the
trustee's sale. During the publication period, the notice of trustee's sale
is published, posted, recorded, and copies are mailed to all entitled
parties. The publication period is normally 30 to 40 days.
RECONVEYANCE: a recorded document which gives notice that the loan
secured by the identified deed of trust has been paid in full.
RESCISSION: See "Notice of Rescission."
REINSTATEMENT: a curing of a default and restoration of the loan
to current status through payment of past-due amounts together with the fee
and expenses of the trustee.
REINSTATEMENT PERIOD: this is the interval from the date the
notice of default is recorded until five business days prior to the date of
sale during which time a default may be reinstated/cured.
REQUEST FOR NOTICE: a recorded document which requests a copy of
any notice of default and any notice of sale to be sent to the requester at
the address shown. See California Civil Code section 2924b(1).
RETURN AND ACCOUNT OF SALE BY TRUSTEE: an itemization prepared by
the trustee or his agent and sent to the successful bidder at the sale. It
gives a complete accounting of the successful bid.
REQUEST TO PREPARE NOTICE OF DEFAULT: See "Transmittal Form.'
SHORT SALE The term short sale describes an expedited
property sale and escrow process used to quickly relieve a property owner of
thier obligation. In most cases, investors provide a cash settlement and/or
re-structure agreement for homeowners needing to sell their property
quickly.
SOLDIER'S AND SAILOR'S RELIEF ACT: an act passed by Congress in
1940, for the financial protection of those persons serving in the military
service. This act is the reason for the completion of the nonmilitary
affidavit forms.
STATEMENT: an itemization of the trustee's fee and expenses
incurred at the conclusion of the foreclosure proceeding (cancellation,
reinstatement, payoff or completed sale).
SUBSTITUTION OF TRUSTEE: a written document that appoints a
successor trustee to the trustee named in the deed of trust, (or present
trustee). This document must be acknowledged by a notary public and recorded
with the county recorder in the county in which the property is located.
TOLL: to temporarily stop. Frequently used to describe the tolling
(stopping) during bankruptcy of any further acts in foreclosure.
TRANSMITTAL FORM: (TS138): this is the "Request to Prepare Notice
of Default" transmittal form which is completed by the lender and forwarded
to T.D. Service Company together with the note, deed of trust, assignments
and other necessary loan documents. This form sets forth all pertinent
information to enable us to prepare the default documents.
TRUSTEE'S DEED UPON SALE: a written document which is prepared and
signed by the trustee when the secured property is sold at a trustee's sale.
This document transfers successful bidder at the sale; must be recorded with
the county recorder in the county in which the property is located.
TRUSTEE'S SALE: the public auction of the real property, described
in the deed of trust, to satisfy the unpaid obligation.
TRUSTEE'S SALE GUARANTEE POLICY: a policy of title insurance given
to the present trustee when a trustee's sale proceeding has been initiated.
This policy provides the names of the current owner, all liens and
encumbrances recorded and other information pertinent to the foreclosure
process. The information is insured to be correct by the title company.
TRUSTEE'S SALE PROCEEDING (foreclosure): the term used to describe
the non-judicial procedure followed by the trustee in enforcing a creditor's
rights when a debt secured on real property is in default.
TRUSTOR: the borrower (or property owner) at the time the deed of
trust was created. Trustor is often used to refer to the current owner.
TS138: See "Transmittal Form."
UNLAWFUL DETAINER ACTION (eviction): a legal action to remove
someone who has unjustly retained possession of real property after one's
right to possess has terminated.
VALID: a condition that is legally sufficient; that will be upheld
by the courts.
VOID: having no legal force or binding effect. Incurable.
VOIDABLE: a condition capable of being made void, although not
necessarily void in itself.
 
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