Home > Guides > Foreclosure > Foreclosure basics > Foreclosure definitions and terms

Foreclosure definitions and terms

By RealtyTrac | Published: Jul 28, 2010 | 53 Comments

Learn more about common definitions and terms used throughout the foreclosure process by mortgage lenders, investors, and real estate professionals.

Notice of Default (NOD): The initial document (non-judicial) filed by a trustee that starts the foreclosure process, usually after the occurrence of a default under the deed of trust, or mortgage. Both LIS and NOD are part of the PRE-foreclosure process.

Lis Pendens (LIS): Notification of pending lawsuit. The initial document (judicial) filed by an attorney or trustee that starts the foreclosure process after the occurrence of default under the deed of trust or mortgage. Both LIS and NOD are part of the PRE-foreclosure process.

Notice of Trustee's Sale (NTS): A filing by notice announcing a public auction.

Notice (Judgment) of Foreclosure Sale (NFS): An order signed by a judge, directing a "Notice of Sale" be published and that a referee (trustee) sell the property at public auction.

Real Estate Owned (REO): "Real Estate Owned" by the lender; the final step in foreclosure process. This document conveys property ownership back to lender.

Government-Owned (GOV): A foreclosed property offered for sale by the government. When a property purchased with a federally insured mortgage (i.e., FHA, VA) is foreclosed by the lender, the federal government pays the lender what is owed, takes possession of the property, and offers the property for sale.

Foreclosure: A legal procedure by which mortgaged property is sold, upon default, in order to satisfy a debt. Foreclosures generally are governed by state law, and rules may vary among states.

Deed of Trust: A type of security instrument where the borrower conveys the property's title to a third party (trustee) to be held "in trust" as security for the note.

Mortgage: A conveyance of an interest in real property, given as security for the payment of a debt. An agreement between two parties: borrower and lender.

Assignment of Deed of Trust or Mortgage: Assumption by a purchaser of liability for payment of an existing mortgage, or deed of trust. May or may not be accompanied by a release of liability of the original borrower.

Novation: The substitution of a new contract between the same, or different parties; a substitution, by mutual agreement, of one debtor for another, or one creditor for another. The result is that the old contract is extinguished, and a new contract is created, usually with the same content, but with at least one different party.

Declaration of Default: A document instructing the trustee (usually appointed by a bank) to prepare and record a Notice of Default (NOD), and if necessary, to sell the property at auction in order to satisfy the unpaid obligation or lien.

Full Reconveyance: A document prepared by a trustee, when an obligation secured by a deed of trust, or mortgage, is paid back in full. Once recorded, this reconveyance eliminates the lien from the property's title.

Junior Lien: A legal claim upon real property recorded subsequent to (after) another claim or legal obligation (for example, a senior lien would have priority in most cases).

Postponement: A verbal announcement made at the time and location of the scheduled trustee's sale, resetting the auction for a later date.

Publication Letter: A letter, when signed by the beneficiary (lender), authorizing the trustee to prepare, publish and record the Notice of Trustee's Sale (notice of auction).

Publication Period: A period beginning at the expiration of the default period, and ending when the trustee's sale has been conducted. During the publication period, the Notice of Trustee's Sale is published, posted and recorded.

Recession of Notice of Default: After an amount in default has been cured, or paid-back, this document, when signed by the lender and recorded by the trustee, removes the burden of the previously recorded Notice of Default.

Reinstatement Period: The time period beginning when the Notice of Default is recorded, and ending five business days before the trustee's auction sale. The default may be cured, or paid-back, at any time during this period by paying all delinquent amounts, including the trustee's fees and costs.

The information above was gathered from sources deemed reliable and is intended for informational purposes only. Please consult official assessment records. State and county terms and policies may vary so consult your local bylaws.

Comments

By Angie Owen,  Tue Aug 31 2010, 22:13
Is this house still for sale?? Please call 419-902-3255 and let me know!!
By John,  Thu Sep 2 2010, 06:58
is it really 842 dollars... if yes i would like to buy it
call 215 827 7962
By Charles Hayes,  Wed Nov 10 2010, 15:17
Upon buying this house is all of the money required to be paid at once or is there mortgage payment to be paid? And if there is can someone else buy the house from under a mortgage holder.
By Tintin,  Thu Dec 2 2010, 21:06
Is this house still for sale ??? please email me: snowleopard023@yahoo.com

TINTIN
By Bea,  Thu Feb 10 2011, 16:31
Is this house still for sale? If so email me @txnanabea@aol.com
By Lin,  Tue Feb 15 2011, 09:00
is this house still for sale? please email me linda11131@comcast.net
By Eyal,  Thu Feb 17 2011, 07:15
if this house still for sale? please email me at eyal_leib@hotmail.com
By Sunnybull2002,  Tue Apr 5 2011, 16:43
I am interested in purchasingthis property. Please reach me at sunnybull2002@yahoo.com
By Itsagoodwitch,  Tue Apr 12 2011, 12:42
more information please, e-mail to itsagoodwitch@aol.com
the picture does not fit to street shown. This is not Santa barbara Blvd, N.!!
By Vasbyt,  Wed Apr 27 2011, 09:41
Please e-mail me back with the bank phone number, since the
ad says, "Bank Owned"
J.Botha
altern.email
johnson7sarah@hotmail.com
or call me 1-619-244-6897
By Sean Mcevoy,  Wed Apr 27 2011, 12:02
Please E Mail me on this Home, Sean McEvoy, E Mail , mcevoy007@hotmail.com
By Lindsaypagel,  Wed May 11 2011, 18:04
is this house still for sale, if so we are very interested! please email me at lindsaypagel@yahoo.com
By Syl,  Sun May 15 2011, 21:11
I am ready to buy, if its still for sale, call me at 949 228 8368
By Wanting To Buy Home,  Mon May 30 2011, 20:07
I was told someone had bought this property and that it was for someone to live in affected by the recent tornados because the buyer had the full amount and was turned down.Please post recent update for this house. Post the bank number who owns the property so someone can actually buy it.
By Sariah,  Wed Jul 6 2011, 13:52
Is this house still for sale? please email me at sariahp@yahoo.com
By Jojo,  Thu Jul 21 2011, 13:03
This house is still available, pls. email me josie94@ymail.com my number 218-640-2031....
By Saralyn78,  Mon Aug 1 2011, 13:03
Can you please Email me at: saralyn_anne@yahoo.com and let me know if this house is still available! Thank you...
By Vitaliykosto,  Wed Aug 3 2011, 14:32
Can u please email me at; vitakosto@yahoo.com and let me know if this house is still availble Thank you. Or call me 570-574-0201
By Gonzo,  Fri Sep 2 2011, 16:00
Hi i am interested in this property along with CASH OFFER. please call 305 200 - 7340.
By Dena Parisi,  Mon Oct 3 2011, 12:13
Hi we are interested in seeing this house, please email me at dna24@msn.com thank you! Dena
By Noris Bouskila,  Sat Oct 29 2011, 21:31
Who to contact for this house? please email norisart.info@gmail.com
By Kiyoko,  Fri Dec 2 2011, 15:47
Were very interested in this house. How do we find out when the auction happens? Djingo021@aol.com

Thanks.
By Abailey122,  Thu Dec 15 2011, 07:44
Very interested in this home. Please contact me via email with a number to call about it at: abailey122@gmail.com
By kalu,  Mon Jan 9 2012, 19:08
My name is Om Mishra. I am very much interested to offer full amount for this home. Please contact email me mishraom2001@gmail.com or 904-994-1374
or leave your voice message and call back no in case if i dont pick up the phone.
By kalu,  Mon Jan 9 2012, 19:11
hi there
By ABR,  Tue Feb 14 2012, 14:23
if it was a foreclosure, it would be listed as a foreclosure. reality trac is just a website trying to make money
By Lyndamalonecrockett,  Sun Mar 4 2012, 15:17
attention people, forclosures and court house auctions are puiblic information all you have to do is go to the darn court house and get the info. also broward county publishes 2 legal news papers for a subscription price of 50 bucks last time i checked. all legal notices relalated to up and comming auctions are published in those 2 journals..DONT CALL THE STUPID BANK OR THE HOME OWNER. YOU NEED TO DO YOUR DUE DILLIGENCE AND FIND OUT IT THERE ARE ANY LIENS ON THE PROPERTY AND WHAT POSTION THE BANK IS IN ON THE PROPERTY..YOU BUY THE LIENS WHEN YOU BUY THE LAND SO BUYER BE WARE..ALSO BANK COULD BE IN SECOND POSIITION AND YOU COULD GET IT OUT FROM UNDER THE BANK..THEY ARE TOO BUSY TO SHOW UP AT EVERY ACUTION...PIGS THAT THEY ARE....GOOD LUCK
By Lyndamalonecrockett,  Sun Mar 4 2012, 15:17
attention people, forclosures and court house auctions are puiblic information all you have to do is go to the darn court house and get the info. also broward county publishes 2 legal news papers for a subscription price of 50 bucks last time i checked. all legal notices relalated to up and comming auctions are published in those 2 journals..DONT CALL THE STUPID BANK OR THE HOME OWNER. YOU NEED TO DO YOUR DUE DILLIGENCE AND FIND OUT IT THERE ARE ANY LIENS ON THE PROPERTY AND WHAT POSTION THE BANK IS IN ON THE PROPERTY..YOU BUY THE LIENS WHEN YOU BUY THE LAND SO BUYER BE WARE..ALSO BANK COULD BE IN SECOND POSIITION AND YOU COULD GET IT OUT FROM UNDER THE BANK..THEY ARE TOO BUSY TO SHOW UP AT EVERY ACUTION...PIGS THAT THEY ARE....GOOD LUCK
By Julie Friedman,  Sat Mar 17 2012, 05:11
Hi I am also interested in this property. Please email: juliefriedman1@yahoo.com. Thank you.
By Bumb Deal,  Sat Mar 24 2012, 07:53
Bank owned Foreclosures can be a real Bumb Deal for the buyer! Banks by law are not required to make any disclosures regarding the condition of the property. Believe me when I say IT IS BUYER BEWARE! A perfect example of this is the REO property located a 2138 Paseo Donito, Alpine, CA 91901. The roof leaks & needs to be replaced & there is mold & water damage on both the first & second floors due to the leaking roof. There are 2 private road maintenance agreements tied to the property. There are a number of access easements across the property. Alpine Fire is owed $4,500.00 for hazard abatement work done by them. None of this was or will be disclosed by the BANK! BUYER BEWARE!
By Kahlia Rhodes,  Fri Apr 6 2012, 21:30
I would like to know who is the listing agent please call me at 267-351-0569
Kahlia Rhodes
By Linette Langowski,  Mon Apr 23 2012, 12:41
Is this house still available
By Nconstant,  Sun Apr 29 2012, 08:46
Is this property still on the market? Please contat me.
By Matie,  Tue Jun 5 2012, 02:57
Would be better to contact with agent, not owner nor bank. You can get some problems due and after buying. Here're agent base. You can find and contact anyone by area or else and he'll consult you about foreclosure absolutely free http://www.indexpost.com/agents/ Don't waste your time and money
By astarte13,  Wed Jun 27 2012, 02:01
I think I live here! What do I do because my landlord won't tell my family a thing. We did notify an attorney and Realtor so we know we've got 90days to live here, WHEN we receive legal notice. We're fine with that because we're buying, just waiting to see how this plays out.

And FYI, the house in NOT on the market. It's currently scheduled for Auction on the date posted. However if the owners pay the past due amount, they did this 3 months ago and we were ok for awhile. The house was pulled for being sold and auctioned, until now. They may or may not pull out of this. Since they don't share things with us. OH, and the plumbing has problems, the downstairs bedroom needs to have the wall rebuilt when they fix this 6 month leak at some point. If anyone wants to buy this as a rental, please fix the things that are wrong, it could be a really nice place. No we can't buy it. The stairs are a hinderance on our elderly parents.
By astarte13,  Wed Jun 27 2012, 02:05
Can I ask a question here? Why do you all ask who the listing agent is?

Honestly! There is NO LISTING AGENT BECAUSE IT"S NOT LISTED YET! LOOK at the posting...it says, "AUCTION" or "Delingquent". Until it states "BANK OWNED", why would you go a bank or an agent who's name got attached to this home...do your homework. This isn't like an auto auction at all. And getting pre-approved is a great idea any way you choose to purchase. Good luck!
By Tinakurniawan,  Sat Jul 14 2012, 09:41
Please leave the complete addresses on all the bank owned as well as the F/C properties, so that we can look at or pass by the bank owned/F/C properties. THanks.
By Peach,  Sat Jul 21 2012, 10:48
is 200 south fourth st home up for sale ? was foreclosed on n renters r in there now ; how long do they get to stay ?
By Peach,  Sat Jul 21 2012, 10:50
is 200 south fourth st home up for sale ; was foreclosed on i heard n is now bank owned ? when do the present tenents get out ;
By Lafaye Haggin,  Thu Sep 27 2012, 12:05
WILL LOVE TO MAKE A CASH OFFER ON THIS HOUSE,# IS(863) 801-1121 OR EMAIL ME @lafaye44@yahoo.com......I have family there and is trying to move closer to my family .i live in florida my husband passed in may of this year and i just want to be near my family
By John Stapleton,  Tue Oct 9 2012, 08:25
Please note that a foreclosure listing in Trulia doesn't mean a property is for sale. Trulia is simply attaching an automated guess at value to an address in some stage of foreclosure. If you want to buy a property, you would be better served to invest your time in those that are available for purchase.
By trobin32003,  Wed Apr 24 2013, 14:28
Hello,
Nice investments. Kindly have a look at these properties they got amazing deals. Follow our Realtor Auctions by copy and paste this link http://bandaluvia.com.br/Realtor%20Property%20Page/index.html
to URL and login with your email to view our properties for sale

Have a lovely day.
Thank you
By katwolf67,  Wed May 8 2013, 12:13
hi we are very interested we live on this street and really love the house please contact me at katwol56rtf67@hotmail.com
By katwolf67,  Wed May 8 2013, 12:14
sorry its katwolf67@hotmail.com
By Liat,  Fri May 10 2013, 23:45
Hello, we would like to buy this house. Please call Lea 415-240-0464.
Thank you.
By Krissy Vermason Law,  Thu May 23 2013, 15:03
I am very interested in this house. I would like to see the inside. Please contact me at krissyklaw@gmail.com
By Sheryl Andrews Nickerson,  Wed Jun 19 2013, 14:25
We are very interested in this house. Would like to set appt to see inside. Please contact me at sheryl.nickerson@ymail.com
By tensitorres-comas,  Mon Jun 24 2013, 03:32
This house is NOT for sale!!! It is our home at 2841 Chestnut Avenue Long Beach California... This pix is two years old. We were in the middle of putting up a dry garden and the façade had not been power washed when the pix was taken. I am asking Trulia nicely to remove the picture of our house as a foreclosure!!!! It is NOT a foreclosure. You have exactly 48 hours to post the correct house for sale... which is probably the house across the street. It is VERY embarrassing to have ppl think we're being foreclosed. My husband and I are both respected professionals. This is extremely reckless and unprofessional on Trulia's part. And, for the record... it is a very nice house. Worth way more than $450,000. Glad you all like it. I'll be checking in 48 hours.
By Prf01,  Sun Jul 21 2013, 05:04
Will pay cash full price.......850 596 7075
By clcatt8,  Thu Aug 1 2013, 22:05
I cannot believe all the people that give their names and contact information for anyone to read...
By Shelku,  Tue Mar 18 2014, 19:54
Is this house still for sale? If yes I'm interest to buy it? Please email me with property information. My email is - shelku@yahoo.com thanks
By bemekel,  Wed May 14 2014, 17:05
I can't help but think that something is rotten in Denmark w/this sale. I followed this house on Wasson for a few months and on a Sat. morning 2/17/14 The house was reduced from $60k to $34,500k. I jumped on it only to find out that someone had beat me to and there was a sale pending. Next thing I see is that it is in foreclosure at $177K. I requested from my realtor to check the status and he said it still shows sale pending. See anything corrupt w/this?
By Gary Papirov,  Wed Jul 16 2014, 12:56
It's very helpful, thank you.

Leave a comment

POST

3/5 guides | View all

The foreclosure process varies somewhat from state to state, and depends primarily on whether the state uses mortgages or deeds of trust for the purchase of real property. Generally, states that use mortgages conduct judicial foreclosures, using the court ...

By RealtyTrac | 27 Comments

Got a real estate question? 

ASK
Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer