Definition of Terms

Notice of Default:
The initial document filed by a trustee that starts the foreclosure process.

Notice of Trustee's Sale:
A notice filed at the recorder's office and published in the newspaper setting forth details of the public auction.

Substitution of Trustee:
A document used to replace or substitute the current Trustee under the deed of trust.

Trustee's Deed Upon Sale:
The last step in the foreclosure process, this document conveys ownership of the property back to the beneficiary or a third party purchaser at the sale.

Foreclosure:
A term used to describe the process used to enforce a payment or obligation of a note on real property which is secured thereto by a deed of trust.

Deed of Trust:
A recorded document which secures the note to the real property, which confers upon the trustee the power of sale.

Declaration of Default:
A document instructing the trustee to prepare and record a Notice of Default, and exercise the power of sale under the deed of trust.

Authorization to Bid Letter:
An authorization form which, when signed by the beneficiary, authorizes the trustee to make the initial opening bid at the trustees sale.

Assignment of Deed of Trust:
A document that transfers the beneficial interest under a note and deed of trust.

Full Reconveyance:
A document evidencing the obligation secured by a deed of trust is paid in full. When recorded, the Reconveyance eliminates the lien from the title of the property.

Junior Lien:
A legal claim upon real property recorded subsequent to another legal obligation or claim, especially to the foreclosing Deed of Trust

Postponement:
A verbal announcement made at the time at location of the scheduled trustees sale, extending the sale to a future date and time.

Public Auction:
A sale made, typically at the courthouse steps, for cash, cashiers check or other liquid funds to satisfy the note or notes in default on the property.

Publication Period:
The second major period of the foreclosure process beginning after the initial 90 day default period has expired and ending when the trustees sale has been conducted. During the publication period, the Notice of Trustees Sale is published, posted and recorded.

Recession of Notice of Default:
After a default has been cured, this document will remove the effect of the previously recorded Notice of Default.

Reinstatement Period:
The time period that commences when the Notice of Default records and ends five business days prior to the trustees sale. The default may be cured at any time during this period by paying all delinquent amounts, including the trustees fees, advances and costs.