Assignment
The transfer of
property to be held in trust or to be used for the benefit
of the creditors (lenders).
Bid
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.
Clear Title
A title that is
not burdened with defects.
Credit Bid
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.
Decree
A judicial
decision.
Deed
A signed
document that transfers ownership of property from one party
to another.
Deed-in-lieu of
Foreclosure
An instance
where borrowers voluntarily convey their rights in a
property to the lender.
Deed of Trust
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.
Default
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
promissory note.
Deficiency Judgment
A personal
judgment against the borrower for the remaining balance on
the loan after a foreclosure sale.
Equitable Title
The present
right to possession with the right to acquire legal title
once a preceding condition has been met.
Fair Market Value
The price a
property would sell for on the open market.
Foreclosure
The forced sale
of property pledged as security for a debt that is in
default.
Free & Clear
Ownership of
property free of all indebtedness.
Judicial Foreclosure
A foreclosure
that is processed by a court action.
Lien
A charge upon
real or personal property for the satisfaction of a debt.
Legal Description
A formal
description of real property sufficient to locate it by
reference to government surveys or approved recorded maps.
Lender
A person who lends money for temporary use on condition of
repayment with interest (i.e., the bank, mortgage company,
etc.).
Lis Pendens
A recorded notice of pending lawsuit.
Mortgage
A written pledge of property that is used as security for
the repayment of a loan.
Non-judicial
Foreclosure
The
non-judicial 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.
Notary
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.
Notice of Sale
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.
Personal Property
Property other
than real property consisting of things temporary or
movable.
Posting
To publish,
announce or advertise by physically attaching a notice to an
object.
Postponement
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.
Right of Redemption
A borrower's
right to reacquire property lost due to a foreclosure.
Request for Notice
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 document.
Subject To
The purchase of
a property with an existing lien against the title without
assuming any personal liability for the liens payment.
Title
The instrument
that is evidence of a person's right in real property (i.e.,
a deed).
Trustee
A neutral party
who advertises the foreclosure property for sale and
conducts the auction to sell said property to the highest
bidder.
Trustee Sale
An auction of
real property conducted by a trustee. Also known as a
Sheriff's Sale.
Upset Bid
A recorded bid
placed after a foreclosure sale has ended that is higher
than the highest bid received at the actual foreclosure
sale.
Writ
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 specified
act.
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