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ASSIGNMENT OF DEED OF TRUST: A
document that transfers the lender’s (beneficiary’s)
interest in a note and deed of trust.
BANKRUPTCY: A legal process that allows
a debtor to discharge certain debts without paying the
total amount due. A bankruptcy does not his or her obligations
secured by a deed of trust.
BENEFICIARY: The lender or person to who the obligation
is owed.
BIDDING INSTRUCTIONS: An authorization form signed by the
beneficiary authorizing the trustee to make the initial opening at a trustee´s
sale.
DECLARATION OF DEFAULT: A document signed by the beneficiary
instructing the trustee to prepare and Notice of Default should the borrower
not bring the loan current, to sell the property, encumbered by the loan,
in order to satisfy the unpaid debt. This document is not recorded.
DEED OF TRUST: A written document describing
the real property being given as security of an obligation.
EXTENSION AGREEMENT: An agreement that extends the due date
of a note.
FORECLOSURE: Enforcing a lender´s rights upon the
default of an obligation that is secured by a deed of trust. A deed of trust
must contain a power of sale clause to enable the trustee to initiate foreclosure.
FULL RECONVEYANCE: A document prepared by the trustee
or substituted trustee, when the obligation secured by the deed of trust is paid
in full. When recorded, the reconveyance takes the deed of trust off record.
NOTICE OF DEFAULT: A written document that gives notice
of public record that a borrower has failed to perform his or her obligation
under the terms of the promissory note. This document is recorded.
NOTICE OF TRUSTEE´S SALE: A document that is recorded,
published, posted and mailed and sets forth the date, time and location of the
trustee´s sale.
POSTPONEMENT: A verbal announcement made at the time and
location of a trustee´s sale, extending the sale to a future date.
PUBLICATION PHASE: The period of time beginning after
the three month starting on the date that the Notice of Default records. This
period ends with the trustee´s sale being conducted. The trustee sees that
the document is recorded, published and mailed in accordance with the requirements
of the civil code.
RESCISSION OF NOTICE OF DEFAULT: After the default has
been brought current or by the request of the beneficiary, this document when
signed by the lender and recorded by the trustee, will remove the Notice of Default
from record.
REINSTATEMENT PERIOD: The time period between the time
that the Notice of Default records and ends 5 business days before the trustee´s
sale. The lender must allow reinstatement during this period of time. A lender
may elect to allow reinstatement after the 5-day period ends, but before the
trustee´s sale.
SOLDERS´ AND SAILORS´ RELIEF ACT OF 1940: An
act passed by Congress for the financial protection of those individuals serving
in the military service.
SUBSTITUTION OF TRUSTEE: A document signed by the lender
and recorded by the trustee whereby the beneficiary appoints a successor trustee
to the trustee of record.
TRUSTEE:The party who holds title to real property in
trust for the benefit of another. The trustee´s most common functions are
to process a full (when a loan is paid off) or partial (when a portion of the
property is being release) and to process of non-judicial foreclosure and process
a trustee´s sale.
TRUSTOR: The borrower/owner at the time the deed of trust
is created.
TRUSTEE´S DEED UPON SALE: A document signed and
recorded by the trustee that transfers ownership of the real property to the
purchaser at a trustee´s sale.
TRUSTEE´S SALE: A public auction sale of a property
described in a Notice of Trustee´s Sale, which property was given as security
for the repayment of an obligation.
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