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A
ACCELERATION CLAUSE
A provision in a Deed of Trust which could allow a lender to demand the entire balance due in the event of change of ownership; that is, third party buys at a trustee’s sale. Same as Due-on-Sale.
ADJUDICATED NEWSPAPER
A newspaper that has met certain judicial requirements to be an official newspaper for the publication of legal notices for a city or judicial district in the county.
ADVANCES
Payments made by a lien holder to prior encumbrances to protect the security of his or her lien; that is, prior loan(s), taxes, insurance, etc.
AFFIDAVIT
A statement sworn to before a Notary Public. (See Declaration)
ALL INCLUSIVE TRUST DEED – (A.I.T.D.)
All-inclusive trust deed/wrap around deed of trust. A junior lien whose amount includes prior lien(s) of record. The borrower makes one payment and the beneficiary apportions the payments to the appropriate liens.
APPRAISAL
- An opinion of value based upon a factual analysis. Legally an estimation of value by two
- disinterested persons of suitable qualifications.
ASSESSOR’S PARCEL NUMBER – (APN)
The identifying number given by the County Assessor to a piece of property and used by the County Tax Collector on the tax bill.
ASSIGNEE
One to whom property is assigned.
ASSIGNMENT
The act of transferring one’s beneficial interest to another.
ASSIGNOR
One who transfers property by assignment.
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B
BANKRUPTCY CHAPTERS – (BK)
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Chapter 7 -
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Liquidation
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Chapter 11 -
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Reorganization
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Chapter 13 -
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Repayment plan
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BENEFICIARY – (BENE)
The lender.
BENEFICIARY’S HIGH/LOW BID
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High bid -
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Total indebtedness.
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Low bid -
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Total indebtedness less interest and late charges.
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Specified Bid - Less than the total debt specified by the lender or investor as the bid for sale.
BROKER’S PRICE OPINION (Broker, Real Estate) – (BPO)
One who is licensed by the state to carry on the business of dealing in real estate (buying andselling property).
A BPO is an opinion of the value or price of a property given by a qualified broker.
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C
CANCELLED
A foreclosure file is terminated, usually through reinstatement or payoff.
CONTIGUOUS LOTS OR PARCELS
One or more lots or parcels of land that touch each other.
CONVEYANCE
A written instrument transferring title to or an interest in land from one party to another.
CREDIT BID
The opening bid at a trustee’s sale is made on behalf of the foreclosing beneficiary. If it is less than or equal to the total amount of money owed to the beneficiary it will be made on a credit basis. But once the bid surpasses the total payoff amount then the beneficiary must begin to bid with cash at hand, just like all other bidders.
CROSS COLLATERAL LOAN
Two or more properties used to secure a loan, one of which may be personal property (e.g., a hotel, together with furniture and furnishings).
CURE THE DEFAULT
Reinstatement or payoff.
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D
DATE-DOWN
A supplementary search by the title company to bring the Trustee Sale Guarantee (TSG) up to date; used prior to setting sale and prior to conducting sale.
DECLARATION
A statement made under the penalty of perjury; not notarized. (See Affidavit)
DECLARATION OF DEFAULT
A document signed by the beneficiary stating the breach by the trustor and requesting the trustee to start the foreclosure.
DEED-IN LIEU OF FORECLOSURE - (DIL)
Borrower deeds property to lender in exchange for cancellation of the debt.
DEED OF TRUST - (DOT)
A three-party instrument (trustor, beneficiary, trustee) to secure a debt used in lending money on real property.
DEFAULT
Failure to perform as promised.
DEFAULT JUDGMENT
A judgment against a defendant who made no appearance in court.
DEFICIENCY JUDGMENT
A personal judgment against a debtor for the amount remaining due after a judicial foreclosure of a trust deed.
DEMAND
A request to the lender for reinstatement or payoff figures.
DOC STAMPS
Documentary transfer tax collected by the County Recorder.
DUE-ON-SALE CLAUSE
See Acceleration Clause.
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E
EASEMENT
A given right to use, but not to won.
ENCUMBRANCE
One or more monetary liens placed against the equity.
ENDORSEMENT
An update to the Trustee Sale Guarantee (TSG) put in writing by the title company.
EQUITY
The difference between the encumbrances and the value of the property.
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F
FOREBEARANCE AGREEMENT – (FB)
Agreement between borrower and lender to “freeze” foreclosure action until certain terms are met.
FORECLOSURE – (FC)
Lender’s legal remedy for nonpayment by the borrower of an obligation (i.e., what happens if you don’t make your payments).
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I
INTERPLEADER ACTION
Asking the court to decide.
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J
JUDICIAL FORECLOSURE
Foreclosing through a court action. (See Non-judicial Foreclosure)
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L
LENDER
Entity that lends money primarily for the purchase of real property.
LIEN
A monetary claim charged against the property.
LIS PENDENS
A recorded notice of pending litigation.
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M
MAILINGS
Any mailing, certified or regular, called for by the Civil Code (should be evidenced by a Declaration of Mailing or Affidavit).
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N
NON-JUDICIAL FORECLOSURE
The most common method of foreclosure in California, which follows Section 2924 of the Civil Code. This method of foreclosure does not go through the court system. (See Judicial Foreclosure)
NOTICE OF DEFAULT – (NOD)
The document that, when recorded, officially begins a foreclosure
NOTICE OF TRUSTEE’S SALE – (NOS)
The notice that is posted, published, mailed, and recorded that gives the date, time, and location of the foreclosure sale.
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O
OFF-CALENDAR
Foreclosure file is still open, but the sale is cancelled.
OFFICIAL FEES
Only what is covered by the Civil Code.
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P
PAYOFF/PAID OFF – (PO)
Obligation paid in full.
POSTING
Physically attaching a copy of the Notice of Trustee’s Sale to the public bulletin board in the city or judicial district where the sale is to be held and on the real property.
POSTPONEMENT, REASONS FOR - (PP)
BANKRUPTCY: postponing until a release has been obtained.
BENEFICIARY’S REQUEST: Beneficiary chooses to delay the sale.
MUTUAL AGREEMENT: Agreement between the trustor and beneficiary.
OPERATON OF LAW: A catch-all phrase for any legal reason for not going to sale.
TRUSEE’S DISCRETION: One time postponement to allow trustee to verify a
recent bankruptcy filing.
PURCHASE MONEY DEED OF TRUST
Deed of Trust, which is given by the trustor in obtaining funds to be used in the purchase of property.
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R
REAL PROPERTY
Land, real estate.
RECEIVER
A third party appointed by the court to receive rent and manage property.
RECONVEYANCE (FULL OR PARTIAL) – (RECON)
A document that is recorded when a loan is paid off which removes the lien from the chain of title.
REDEMPTION RIGHT
Does not apply to non-judicial foreclosures in California.
REINSTATEMENT
Having brought the delinquent loan to a current status.
RELIEF FROM STAY – (Relief)
An order from the bankruptcy court allowing a lender to proceed with its default remedies (e.g. trustee’s sale) against a debtor.
REAL ESTATE OWNED – (REO)
Property taken back by the lender.
REQUEST FOR NOTICE
A recorded document by which one requests to be notified in the event of foreclosure under a specific Deed of Trust.
RESCISSION
A document that is recorded when a delinquent loan is brought current after foreclosure has been initiated.
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T
TOTAL INDEBTEDNESS
The entire amount that an owner/trustor owes or is “indebted” for to the lender/beneficiary.
TRUST DEED – (DOT)
See Deed of Trust
TRUSTEE
The third party in a Deed of Trust whose functions are to conduct a foreclosure in the event of default or issue a Reconveyance in the event of a payoff.
TRUSTEE’S DEED
The instrument that conveys title to the successful bidder following a foreclosure sale.
TRUSTEE’S SALE
See Notice of Trustee’s Sale.
TRUSTOR
The borrower.
TRUSTEE’S SALE GUARANTEE – (TSG)
A title report, obtained by the trustee that provides necessary information to complete a foreclosure.
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U
UNLAWFUL DETAINER – (UD) also known as Eviction
The legal procedure by which occupants are evicted.
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V
VESTEE
Present record owner.
VESTED INTEREST
Having an interest in the property.
VESTING
How title is held to a piece of property
VETERANS AFFAIRS (VA = a government entity which guarantees loans for people who have served in the armed forces) SPECIFIED BID
On VA insured loans, the VA tells the beneficiary how much the opening bid should be at the trustee’s sale. This amount is lower than the total indebtedness.
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W
WRAP-AROUND DEED OF TRUST
See All-inclusive Deed of Trust
ABBREVIATIONS:
AKA - Also Known As
FKA - Formerly Known As
NKA - Now Known As
WATA – Who Acquired Title As
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