An option given to lenders
through an "acceleration" clause in the mortgage or
deed of trust requiring the borrower to pay the
entire balance of the loan all at once if their loan
is in default.
A sworn statement in writing
usually given while under oath or in the presence of
The process in which a
licensed or authorized person gives an estimate of
The difference between the
increased value of the property and the original
The transfer of property to
be held in trust or to be used for the benefit of
the creditors (lenders).
The offered amount for a
property for sale at auction.
Certificate of Sale
A document given to the
winning bidder at a foreclosure sale stating their
rights to the property once the borrowers redemption
period has expired.
A title that is not burdened
A bid on behalf of the lender
at a foreclosure sale. The bid amount must be less
than or equal to the balance of the loan in default.
A judicial decision.
A signed document that
transfers ownership of property from one party to
Deed-in-lieu of Foreclosure
An instance where borrowers
voluntarily convey their rights in a property to the
A three party security
instrument conveying the legal title to real
property as security for the repayment of a loan.
The three parties included in a deed of trust are
the borrower, lender and trustee.
A mortgage or deed of trust
is said to be in default when the borrower fails to
make the payments as agreed to in the original
A personal judgment against
the borrower for the remaining balance on the loan
after a foreclosure sale.
The present right to
possession with the right to acquire legal title
once a preceding condition has been met.
The price a property would
sell for on the open market.
The forced sale of property
pledged as security for a debt that is in default.
Ownership of property free of
A foreclosure that is
processed by a court action.
A charge upon real or
personal property for the satisfaction of a debt.
A formal description of real
property sufficient to locate it by reference to
government surveys or approved recorded maps.
A person who lends money for temporary use on
condition of repayment with interest (i.e., the
bank, mortgage company, etc.).
A recorded notice of pending lawsuit.
A written pledge of property that is used as
security for the repayment of a loan.
process of foreclosure is used when a power of sale
clause exists in a mortgage or deed of trust. A
"power of sale" clause is the clause in a deed of
trust or mortgage, in which the borrower
pre-authorizes the sale of property to pay off the
balance on a loan in the event of the their default.
A public officer
licensed by the state to attest to and certify the
validity of signatures of others. A notary is often
referred to as a notary public.
A notice giving
specific information about the loan in default and
the proceedings about to take place. This notice
must be recorded with the county where property is
located and advertised as stated in the security
document or as dictated by state law.
Property other than
real property consisting of things temporary or
To publish, announce
or advertise by physically attaching a notice to an
Postponement means to put off to a later
time. In the case of a foreclosure sale, this is
generally done by announcement at the original sale
or by posting notices establishing the new date and
time the foreclosure sale will take place.
A borrower's right to
reacquire property lost due to a foreclosure.
A recorded document
requiring a trustee send a copy of a Notice of
Default or Notice of Sale concerning a specific deed
of trust in foreclosure to the person who filed the
The purchase of a
property with an existing lien against the title
without assuming any personal liability for the
The instrument that is
evidence of a person's right in real property (i.e.,
A neutral party who
advertises the foreclosure property for sale and
conducts the auction to sell said property to the
An auction of real
property conducted by a trustee. Also known as a
A recorded bid placed
after a foreclosure sale has ended that is higher
than the highest bid received at the actual
An order or mandatory
process in writing issued in the name of a court or
judicial officer commanding the person to whom it is
directed to perform or refrain from performing a