Assignment of Mortgage:
Assumption of responsibility by a purchaser for the payment of an existing mortgage or deed of trust. The original borrower may be released from liability.
Bankruptcy:
This legal proceeding allows a debtor the opportunity to discharge certain obligations or debts. It also allows the debtor the time to reorganize their financial affairs in order to fully pay the debt. A lien secured by an assessment is not discharged in bankruptcy.
Declaration Of Default:
A document that instructs the trustee (usually a bank appointed) to prepare and register a Notice of Default and, if necessary to sell the property at an auction to satisfy any unpaid obligation.
Deed of Trust:
This legal document is where the borrower transfers the title to a third party (trustee), to serve as security to the lender. The trustee will transfer the deed to the borrower once the loan has been paid in full. The trustee will sell the property and repay the mortgage debt if the borrower defaults.
Foreclosure:
This legal action terminates all ownership rights in a house if the buyer fails to pay the mortgage payments, or is otherwise in default of the mortgage terms.
Full Reconveyance:
A document that is prepared by a trustee to pay back the entire amount of an obligation due to a deed or mortgage. This reconveyance removes the lien from the property's title once it is recorded.
Government-Owned:
Foreclosed property that is being offered for sale by the government. The federal government forecloses a property that was purchased with a federally insured mortgage (e.g. FHA, VA).
Junior Lien:
A legal claim on real property that is recorded after (or in addition to) another claim or obligation. In most cases, a senior lien would be the priority.
Junior Lienholders:
Also known as secondary or other lienholders. This refers to those who have a lien on the property.
Lien:
A claim on property or charge for the payment of a debt. If you fail to make your mortgage payments, the lender has the right to seize the title to your property.
Lis Pendens:
A notice that a lawsuit has been filed, which can affect title. The lender usually files a lis pendens to initiate the foreclosure process under judicial foreclosure (just like a notice de default starts the non-judicial foreclosure process).
Military Affidavit:
Written and a sworn declaration that the property owner is not currently serving in the military and does not have any rights under the Soldier's and Sailor's Relief Act of 1941.
Mortgage:
A conveyance of an interest in real property as security for payment of a loan. A contract between two parties
Notice of Foreclosure Sale:
An order signed and signed by a judge directing that a "Notice of Sale" be published and that a trustee (trustee), sell the property at public sale.
Notice Of Default:
This is the initial non-judicial document that a trustee files to start the foreclosure process. It usually occurs after a default under a deed or mortgage. The PRE-foreclosure process includes both LIS and NOD.
Notice to Trustee's Sale:
This document is sent by mail, recorded, advertised, and posted. It includes information such as the date, time, and location of the Trustee’s Sale, and a description of what property is being sold.
Novation:
Substitution of a contract between the same or different parties; a mutually agreed substitution of one creditor or debtor for another. The old contract is dissolved and a new contract is made, often with the same content but with at least one other party.
Postponement:
A verbal announcement at the time and location of the Trustee's sale. This announcement sets the new date/time for the Trustee’s Sale.
Pre-Publication Period:
This is a statutory minimum of three months after the recording of the Notice of Default. The trustee must wait for this time before setting a date to sell the Trustee.
Publication Letter:
Authorization from homeowners association to allow the Trustee set the sale date, and commence notification and publication for the Notice of Trustee’s Sale.
Publication Period:
The period that begins after the Pre-Publication Period ends with the Trustee's sale. The Notice of Sale is posted, advertised, recorded, and mailed during the Publication Period. The time period lasts approximately 30 days.
Real Property Owned (REO):
The lender's final step in the foreclosure process. This document reaffirms the lender's ownership of the property.
Recession Notice of Default:
This document is signed by the borrower and recorded by trustee to remove the burden of the Notice of default previously recorded.
Reinstatement Period:
The time between the Notice of Default and the auction sale. You can cure or pay-back the default at any point during this period. This includes all amounts due, as well as trustee fees and costs.
Rescission a Notice Of Default:
This document cancels the effects of the Notice of default that was previously recorded.
Substitution Of Trustee:
A written document that appoints one trustee to replace another.
Trustee:
A person or party to which property is transferred in trust for the benefit and enjoyment of others.
Trustee’s Deed Upon Sale:
This document is signed by the Trustee and transfers the property's ownership to the successful bidder at the Trustee’s Sale.
Trustee’s Sale: A public auction sale of property described in a Notice of Default and that is the subject of Trustee’s Sale Proceeding.
Trustee’s Sale Guarantee:
Written guarantee from title companies assuring accuracy and completeness. This is required to process non-judicial foreclosures.
