| Glossary of Loan Modification Terms & Definitions

A

ACCELERATION CLAUSE: A provision that allows the lender to demand the entire balance of the mortgage loan when the borrower fails to make some installment payments as defined in the note.

ADJUSTABLE RATE MORTGAGE (ARM): A mortgage loan subject to changes in interest rate or other terms and/or conditions. When rates change ARM monthly payments increase or decrease at intervals and indexes determined by the lender. Changes in payment amount are subject to monthly, annual, and life of the loan "top stops" or "rate caps", which determine the legal ways that interest rates and payments are allowed to decrease or increase.

AFFIDAVIT: A written statement, usually given while under oath or in the presence of a notary.

ALL MORTGAGE LAWS: See "Federal & State Mortgage Laws".

AMORTIZATION: Repayment of a mortgage loan through monthly installments of principle and interest; the monthly payment amount is based on a schedule that will allow you to own your home at the end of a specific time period (for example, 15 or 30 years)

ANNUAL PERCENTAGE RATE (APR): Calculated by using a standard formula, the APR shows the cost of a loan; expressed as a yearly interest rate, it includes the interest, points, mortgage insurance, and other fees associated with the loan as defined in the note. The truth in lending act requires notification of the APR by all lender.

APPRAISAL: The process by which a licensed person gives an estimate of a properties value.

APPRECIATION: The difference between the increased value of the property and the owing balances on mortgage loans and other property liens.

ASSIGNMENT: The transfer of property to be held in trust or to be used for the benefit of the creditors (usually lenders).

ASSIGNMENT OF DEED OF TRUST: A written document that transfers the beneficial interest in a note and deed of trust from one to another.

AUTHORIZATION TO SIGN AS AGENT AGREEMENT: Written document given by a beneficiary authorizing an agent to sign a document (such as a notice of default).

B

BALLOON PAYMENT: Large installment payment required at the end of the term of the mortgage note to pay off the entire mortgage balance in one lump sum. (also see amortization)

BANKRUPTCY: A federal law whereby a person's assets are turned over to a trustee and used to pay off outstanding debts; this usually occurs when someone owes more than they have the ability to repay.

BANKRUPTCY: A legal proceeding which allows a debtor to discharge certain debts or obligations without paying the full amount or allows the debtor time to reorganize his financial affairs so he can fully pay his debts. (A bankruptcy does not discharge obligations secured by a deed of trust.)

BENEFICIARY: The lender their successor for whose benefit a trust is created and to whom the debt is owed.

BID: The amount for a foreclosed property that is for sale at auction.

BID AUTHORIZATION LETTER: Your written authorization instructing the trustee to make the initial opening bid at the trustee's sale on the lender's behalf. This form will also advise our office of any additional amounts to be included in the opening bid, (total Debt), such as funds advanced by you to pay delinquent real estate taxes, etc.

BORROWER: A person who has been approved to receive a loan and is then obligated to repay it and any additional fees according to the loan terms.

BORROWER: A person or entity approved to receive a loan and then obligated to repay the loan as well as its specified interest and any additional fees.

BREACH: The failure without legal excuse to perform any promise made in a contract. A breach is stated in the notice of default.

C

CASH-FOR-KEYS: An agreement between a lender and a borrower (or borrowers agent or attorney) where lender essentially "pays" the borrower/homeowner to vacate the house instead of the lender going through foreclosure proceedings or some other form of property disposal.

CERTIFICATE OF SALE: A document issued to the winning bidder at a foreclosure sale auction stating their rights to the property once the borrower's redemption period has expired.

CERTIFICATE OF TITLE: A document provided by a qualified source (such as a title company) that shows the property legally belongs to the current owner; before the title is transferred at closing, it should be clear and free of all liens or other claims.

CLAIM DATA: An itemization of the trustee's fee and expenses provided to the lender when the notice of default records and again at publication. A claim date is furnished for the lenders information and is not an invoice.

CLEAR TITLE: A title that is not burdened with defects such as liens or judgments.

CRAMDOWN: In a chapter 13 bankruptcy (see: Chapter 13), as of 2009 a "cramdown" is a new rule allowing a bankruptcy judge to force a borrower's lender to modify the borrower's loan into more affordable terms. This is a legal decree that a lender must comply with, whether or not the borrower or the borrower's attorney failed in a previous loan modification attempt.

CREDIT BID: A bid on behalf of the lender at a foreclosure sale. The bid amount must be less than or equal to the owing balance or balances of the loan or loans in default.

CREDIT HISTORY: History of an individual's types of debt, history of debt, debt payment record; this information is used to gauge a potential borrowers ability to repay a loan. In the U.S., credit histories are maintained by three private non-governmental entities: Equifax, Experian, Trans Union

CREDIT REPORT: A written record of an individuals credit history, usually obtained from one of the major credit bureau's, Equifax, Experian, or Trans Union.

CREDIT SCORE: A mathematical score derived from complex algorithms which take into account all factors in a person's credit history. Lenders use credit scores as a mathematical predictive tool to gauge a borrowers likelihood of repayment. NOTE: Not commonly known by the general public, there are literally dozens of different types of credit scores. The most commonly referred to scores are FICO™ score, Beacon™ score, and Empirica™ Score.

D

DEBT-TO-INCOME RATIO'S (DTI): A comparison of a borrower's monthly income to their monthly expenses. There are two main debt-to-income ratio's: the "Top Ratio" aka "Front-End Ratio" is a comparison of the mortgage payment divided by the borrowers gross monthly income; the "Bottom Ratio" aka "Back-End Ratio" is a comparison of the total monthly expenses of the borrower including mortgage payment divided by the borrowers gross monthly income.

DECREE: A judicial decision made by a judge or magistrate.

DECREE OF FORECLOSURE: A court order to set out the outstanding amount on a delinquent mortgage in order to sell the property to pay the mortgagee. A court order to set out the outstanding amount on a delinquent mortgage in order to sell the property to pay the mortgagee.

DEED: The document that transfers ownership of a property.

DEED-IN-LIEU: To avoid foreclosure ("in lieu" of foreclosure), a deed is given to the lender to fulfill the obligation to repay the debt; this process doesn't allow the borrower to remain in the house but helps avoid the costs, time, and effort associated with foreclosure.

DEED OF TRUST: A written document, describing the real property that is being given as security for the repayment of an obligation.

DEFAULT: The inability to pay monthly mortgage payments in a timely manner or to otherwise meet the mortgage terms.

DEFICIENCY JUDGMENT: A judgment entered against the borrower in a lawsuit when a property is sold for less than the amount of the loan. In California and several other states there is no deficiency judgment, by law.

DELINQUENCY: Failure of a borrower to make timely mortgage payments under a loan agreement.

DIFFERENCE BETWEEN A LOAN MODIFICATION AND A TIERED MORTGAGE RATE RE-CAST: Loan Modifications, when properly executed reduce a borrowers interest rate and monthly payment. In addition they may re-term the existing length of a borrowers loan, extend the term to forty years, change an "interest-only" loan to a fixed rate, principle and interest payment loan, can change an "adjustable-rate" loan, or an "Option ARM" loan to a fixed rate principle and interest payment loan. In addition (although exceedingly rarely) can sometimes result in a principle balance reduction.

A " Tiered Mortgage Rate Re-Cast " is currently 800 Fix My Loan's most effective and successful mortgage mediation tool. Unlike all the different possible changes theoretically possible with a loan modification (which banks are no longer granting by and large), A " Tiered Mortgage Rate Re-Cast " nearly always only results in a moderate to significant interest rate decrease, or improvment from any form of adjustable mortgage to one that has a fixed term and fully ammortized principle and interest payments for the life of the borrowers loan.

E

ENCUMBRANCE: A mortgage, deed-of-trust, judgment, tax lien, or any other type of restriction on the use of land or property.

EQUITABLE TITLE: The present right to possession with the right to acquire legal title once a preceding condition, such as the satisfaction of a lien or judgment has been met.

EQUITY: The value of real estate less the outstanding mortgages or deeds-of-trust and/or other encumbrances or debts such as judgements, child support or alimony decrees, etc liening or pledged against the property.

EVICTION: The act of depriving a person of the possession of land or rental property that he has held or leased.

EXTENSION AGREEMENT: An agreement (normally written) giving additional time to pay an obligation.

F

FAIR MARKET VALUE: The hypothetical price that a willing buyer and seller will agree upon when they are acting freely, carefully, and with complete knowledge of the situation.

FEDERAL TAX LIEN: An obligation to the United States government as a result of non-payment of taxes.

FEDERAL & STATE MORTGAGE LENDING, CREDIT, & PRIVACY LAWS THAT AFFECT YOUR LOANS:
    MOST COMMONLY CHALLENGED FEDERAL LAWS FOR LENDER VIOLATIONS:

    ADDITIONAL IMPORTANT FEDERAL LAWS

    STATE LAWS
   

FEE SIMPLE: A common term used to indicate complete legal ownership of a property.

F H A: Federal Housing Administration within the U.S. Department of Housing & Urban Development (HUD). FHA is one of several Government agencies that regulate the United States housing market.

FIXED RATE MORTGAGE: A mortgage with payments that remain the same throughout the entire life of the loan because the interest rate and other terms are fixed and do not change.

FORBEARANCE: A loss mitigation option where the lender arranges a revised repayment plan for the borrower that may include a temporary reduction or suspension of monthly loan payments.

FORECLOSURE: A legal procedure whereby property used as security for a debt is sold to satisfy the debt in the event of default in payment of the mortgage note or default of other terms in the mortgage document. The foreclosure procedure brings the rights of all parties to a conclusion and passes the title in the mortgaged property to either the holder of the mortgage or a third party who may purchase the realty at the foreclosure sale, free of all encumbrances affecting the property subsequent to the mortgage.

FORECLOSURE MITIGATION: A process whereby a property owner agrees in writing to allow a third-party to communicate directly with their lender during the process of foreclosure. This rapidly growing service segment is used to assist homeowners with saving their home from foreclosure through reinstatement, remodification and/or other potential options.

FREE & CLEAR: The ownership of property without any debt or encumbrances.

G

GOOD FAITH ESTIMATE (GFE): An estimate of all closing costs including pre-paid and escrow items as well as lender charges. By government regulation a GFE must be given to the borrower within three days after the submission of a loan application.

GOVERNMENT SPONSORED ENTERPRISES (GSE): The Government Sponsored Enterprises (GSE's) are a group of financial services corporations created by the United States Congress. Their function is to enhance the flow of credit to target sectors of the economy and to make those segments of the capital market more efficient and transparent. The desired effect of GSE's is to enhance the availability and reduce the cost of credit to the targeted borrowing sectors of home finance, education, and agriculture.

GRACE PERIOD: The period between the due and the overdue date shown in the note during which no late payment penalty applies to the mortgage payment.

GUARANTEE: Federal Insurance, such as from the Department of Veterans Affairs, agrees to cover loss up to a certain dollar figure on a loan made by a private lender if it goes into default and foreclosure.

H

HARD EXPENSES: The monthly expenses that are definite and documented. Examples include: Installment debt like mortgage payments, car loans, and personal loans. Most hard expenses will be included and shown on one's credit report.

HAZARD INSURANCE: Different types of insurance coverage protecting the property owner and lender against destruction of the property. Types of hazard insurance include: Fire Insurance, Homeowners Insurance, Earthquake Insurance, Flood Insurance, Landslide/Mudslide Insurance, Tornado/Hurricane Insurance.

HOMEOWNERS INSURANCE: An insurance policy including fire insurance on the dwelling and the personal belongings of the homeowner packaged with a broad set of other additional coverages which include selected theft coverages and selected personal liability protection coverages.
NOTE: Coverages such as Earthquake, Flood, Mudslide, and/or Tornado, are not covered as standard in a homeowners policy.

HOME LOANS: Moneys loaned to any borrower (including entities like trusts and corporations) which is secured either by the financial instrument known as a mortgage or in some states known as a deed-of-trust. Home loans or mortgages come in over 30 different types, if you have a specific question about your own home loan(s) please call 800 - Fix - My - Loan (800-349-6956).

HOME WARRANTY INSURANCE: A specialized type of insurance coverage that to select, specified, minimums offers protection for roofs, appliances, and plumbing.
NOTE: Home Warranty Insurance is not to be confused with Homeowners Insurance.

I

INDEMNIFY: Any losses and damages endured by another person that you are fully responsible for.

INTEREST: A fee charged for the use of money; also classically defined as "the time value of money".

INTEREST RATE: The amount of interest charged on a monthly loan payment expressed as a percentage.

INTEREST ONLY: A feature in some loan programs that allows the borrower to pay only the interest on a loan without paying down any of the principle balance with each monthly payment.

INVALID: Not legally sufficient; no binding force.

INVOLUNTARY LIEN: A lien issued against a property without the owners approval.  Mechanic's Liens such as those used by contractors to ensure payment are an example .

J

JUDGMENT: The final decision of the court resolving the dispute and determining the rights and obligations of the parties. In Real Estate proceedings, judgments are  normally monetary awards.

JUDICIAL FORECLOSURE: A foreclosure process which is executed via a court action.

JUNIOR LIEN: A lien that is subordinate or junior to a senior lien.

L

LAWS, MORTGAGE LAWS: See "Federal & State Mortgage Laws".

LEGAL DESCRIPTION: A formal description of real property so that one can locate it by reference to government surveys or approved recorded property maps.

LENDER: To give/lend money on condition that it is returned and that interest is paid for its temporary use. Banks are commonly known as lenders. Your mortgage broker is not a lender, but rather sold your loan to a lender.

LENDER: A person or entity who lends money for temporary use on the condition of repayment with interest.

LIEN: A legal claim against property that must be satisfied when the property is sold.

LIMITED POWER OF ATTORNEY: A recorded document which authorizes someone to act as attorney-in-fact in a specific manner for someone else.

LIS PENDENS: A recorded notice of pending legal action, which notifies prospective purchases and encumbrances that any interest acquired by them in property litigation is subject to the decision of the court.

LOAN MODIFICATION: Procedure in which a loan's terms, such as interest rate, monthly payment, or duration, are altered. Also known as Mortgage Modification or Mediation, Loan Mediation, Loan Workout, Loan Restructuring, Loss Mitigation, etc.

LOAN-TO-VALUE RATIO (LTV): A percentage calculated by dividing the amount borrowed by the price or appraised value of the property to be purchased. The higher the LTV, the less cash a borrower is required to pay as a down payment.

LOAN-TO-VALUE (LTV) RATIO: A percentage calculated by dividing the amount borrowed by the price or appraised value of the home to be purchased; the higher the LTV, the less cash a borrower is required to pay as down payment.

LOSS MITIGATION: A process to avoid foreclosure. The lender tries to help a borrower who has been unable to make loan payments and is in danger of defaulting on his or her loan. NOTE: The following terms all come under the term "Loss Mitigation" ~ Loan Workout, Loan Mediation, Loan Modification, Loan Rescission, Forbearance, Deed-in-Lieu of Foreclosure, Cash-for-Keys, Partial Payment, Repayment Plan.

M

MORTGAGE: A written pledge of the property that is used as security for the repayment of a loan. (also known in some states as a deed-of-trust). Also, A lien, or Security Instrument on the property that secures the Promise to repay a loan.

MORTGAGE BACKED SECURITY: Federal National Mortgage Association (FNMA or Fannie Mae), Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac) or Government National Mortgage Corporation (GNMA or Ginnie Mae). Are quasi-governmental enterprises (see government sponsored enterprises) which, through bond issues in the stock market or through institutional investors such as big insurance companies, raise money and buy blocks of mortgages that have been packaged by banks, savings and loans, or other types of mortgage originators.

MORTGAGE BANKER: A licensed company that originates loans and resells them in the secondary mortgage market to entities like Fannie Mae, Freddie Mac, or Ginnie Mae.

MORTGAGE BROKER: A licensed person or company that originates and processes loans for a number of different lenders and who is able to "shop" for the best interest rates and terms for a borrower.

MORTGAGE INSURANCE: A policy that protects lenders against some or most of the losses that can occur when a borrower defaults on a mortgage loan; mortgage insurance is required primarily for borrowers with a down payment of less than 20% of the home's purchase price.

MORTGAGE INSURANCE PREMIUM (MIP): A monthly payment - usually part of the mortgage payment - paid by a borrower for mortgage insurance.

MORTGAGE LAWS: See "Federal & State Mortgage Laws".

MORTGAGE MODIFICATION: A loss mitigation option that allows a borrower to refinance and/or extend the term of the mortgage loan and thus reduce the monthly payments. 

N

NON-JUDICIAL FORECLOSURE: Foreclosure on a mortgage without filing lawsuit or obtaining court order; generally occurs because borrower has signed document such as deed of trust that gives trustee right to sell property to pay off debt.

NON-MILITARY AFFIDAVITS: A sworn statement, in writing from the beneficiary or his agent which declares that the property owner is not entitled to any rights under the Soldier's and Sailors Civil Relief Act of 1940.

NOTARY PUBLIC (NOTARY): A public officer licensed by the state to attest to and certify the validity of signatures of others.

NOTE: A written document, (promise to pay), that sets forth the amount of the obligation and the terms of repayment.

NOTICE OF DEFAULT: A written document that gives constructive notice of a trustor's failure to perform his obligation under a deed of trust. This document does not require the acknowledgment of a notary public.

NOTICE OF RESCISSION: A written document that cancels or annuls the effect of a notice of default when a default has been cured (reinstated). This document does not require the acknowledgment of a notary public, but must be recorded with the county recorder in the county in which the property is located.

NOTICE OF TRUSTEE'S SALE: A written document that sets forth the day, date and time of the trustee's sale (trustee's sale is part of a foreclosure proceeding) describes the property to be sold and gives an estimate of the opening bid. This document is prepared by the trustee and does not require the acknowledgment of a notary public. It must be recorded with the county recorder in the county in which the property is located at least 14 days prior to the scheduled sale date.

O

OPTION ADJUSTABLE RATE MORTGAGE (OPTION ARM): A type of adjustable rate mortgage (see adjustable rate mortgage) allowing a borrower for payment options ~

Option 1: paying an amount pre-determined by the lender, which surprisingly equals less than interest only! The difference between this payment amount and the choice of interest only (Option 2) is added on to the principle balance and is known as "Negative Amortization"; Option 2: interest only (see interest only); Option 3: a payment amortized over 30 years; Option 4: a payment amortized over 15 years.

P

PARTIAL CLAIM: A loss mitigation option offered by the FHA that allows a borrower, with help from a lender, to get an interest-free loan from HUD to bring their mortgage payments up to date.

PERSONAL PROPERTY: Property, other than real estate consisting of things that are mobile or movable.

POSTING: To publish, announce or advertise by physically attaching a notice to an object, i.e. tacking the notice to the front door of a home showing "Notification of Sheriffs Sale" or "Notification of Trustee's Sale".

POSTPONEMENT: An announcement made at the time and place of the scheduled trustee's sale that establishes a new date for the trustee's sale. Normally the sale cannot be changed from the originally noticed location. Regarding a foreclosure sale, this is generally done by announcement at the time of the original sale, or, by posting notices establishing a new date and time that the foreclosure sale shall take place.

PRE-FORECLOSURE SALE: Allows a defaulting borrower to sell the mortgaged property to satisfy the loan and avoid foreclosure.

PRE-PUBLICATION PERIOD: The three month period following the recording of the notice of default. Prior to 1986 this period was called the reinstatement period.

PRESENT OWNER, CURRENT OWNER, NEW OWNER: The successor to the trustor named in the deed of trust and now the owner of the property.

PRINCIPLE BALANCE REDUCTION: Instance where the bank forgives a portion of your principle balance as part of a loan modification. The mortgage payment due for this note is based off the new loan amount. Only applicable in heavily depreciated areas.

PROMISSORY NOTE: See "Note."

PUBLICATION LETTER: This letter is sent to the lender by the trustee. When completed and returned, it authorizes the trustee to proceed with the scheduling of the trustee's sale and preparation of the notice of trustee's sale.

PUBLICATION PERIOD: This is the interval beginning the day after the pre-publication period expires and ending with the conducting of the trustee's sale. During the publication period, the notice of trustee's sale is published, posted, recorded, and copies are mailed to all entitled parties. The publication period is normally 30 to 40 days.

R

RECONVEYANCE: A recorded document which gives notice that the loan secured by the identified deed of trust has been paid in full.

REDEMPTION PERIOD: The time allotted to the mortgagor ( borrower ) to reclaim his/her property after it has been sold at an auction. Not all states have a redemption period.

REFINANCE: Paying off one loan by obtaining another; refinancing is generally done to secure better loan terms (like a lower interest rate).

REINSTATEMENT: A curing of a default and restoration of the loan to current status through payment of past-due amounts together with the fee and expenses of the trustee.

REINSTATEMENT PERIOD: This is the interval from the date the notice of default is recorded until five business days prior to the date of sale during which time a default may be reinstated/cured.

REPAYMENT PLAN: Adding a portion of, or all of the delinquent mortgage balance, lender delinquency fees, and/or penalty fees on top of the normal monthly payments until caught up. Plan for repaying missed payments over time.

REQUEST FOR NOTICE: A recorded document requiring a trustee to send a copy of a "notice-of-default" or "notice-of-sale" concerning a specific mortgage in foreclosure or deed of trust in foreclosure to the person or entity who originally filed the document. See California Civil Code section 2924b(1).

REQUEST TO PREPARE NOTICE OF DEFAULT: See "Transmittal Form.'

RESCISSION: See "Notice of Rescission."

RESPA: Real Estate Settlement Procedures Act 

RETURN AND ACCOUNT OF SALE BY TRUSTEE: An itemization prepared by the trustee or his agent and sent to the successful bidder at the sale. It gives a complete accounting of the successful bid.

RIGHT OF REDEMPTION: A borrower's right to re-acquire property that has been lost due to foreclosure. This right allows the owner to recover property lost to a foreclosure judgment, or sold after a foreclosure sale, within a certain period of time. The redemption period varies from state to state.
(See: Information for all 50 states)

S

SHERIFF’S SALE: The sale of a property to satisfy a debt or judgment.

SHORT LOAN MODIFICATION (SHORT MODIFICATION): When a borrower has been granted any of the many forms of loan modification whether instituted previously by a Broker, an Attorney, or when a borrower's original Lender initiated contact with the borrower and any of these entities got some form of modification completed, a short modification SM is a second try for better terms and conditions than were originally granted. In this instance this will equate to far better terms, interest rates, etc. than were originally granted. Short Modifications are becoming somewhat commonplace due to the pathetic completely self-serving poor loan modifications granted originally from direct Lender contact with borrowers.

SHORT RE-FINANCE: A form of loan workout or loan modification where, after negotiation between the lender or lender’s servicing agent and the borrower, the lender agrees to either itself refinance borrower's current loan with completely different / extended terms & conditions OR, lender agrees to allow some other new lender to refinance borrower's current loan(s) but in both instances, current lender reduces the current principle balance, due to hardship and /or home value market conditions, i.e. current value of home is less than current total principle balance(s) of borrower's existing mortgage(s) which is known as being "underwater" or "upside down".

SHORT SALE: Sale of a house in which the proceeds fall short of what the owner still owes on the mortgage. Many lenders will agree to accept the proceeds of a short sale and forgive the rest of what is owed on the mortgage or deed of trust when the owner cannot make the mortgage payments. By accepting a short sale, the lender can avoid a lengthy and costly foreclosure, and the owner is able to pay off the loan for less than what he owes.

SILENT SECOND MORTGAGE: A silent second mortgage aka "Silent Second" is a specialized type of loan usually available only to selected borrower group's such as school teachers, police, fire fighters, and sometimes military personnel. The uniqueness of this kind of loan is that once granted to a qualifying borrower under the proviso that the borrower reside in the house for a period usually of seven or ten years (the term length varies widely in silent seconds) surprisingly the loan is forgiven as though it were originally a grant, not a loan, and never needs to be repaid. The other fascinating feature of silent seconds is that they have no monthly payments either. These unique loans are usually available only through special state, county, or city programs.

SOFT EXPENSES: Monthly expenses that fluctuate and are somewhat difficult to document accurately. These include food, gas, cleaning, entertainment, and other incidentals that are not shown on one's credit report.

SOLDIER'S AND SAILOR'S RELIEF ACT: An act passed by Congress in 1940, for the financial protection of those persons serving in the military service. This act is the reason for the completion of the nonmilitary affidavit forms.

SPECIAL FORBEARANCE: A loss mitigation option where the lender agrees to arrange a revised repayment plan for the borrower that may include a temporary reduction or suspension of monthly loan payments.

STATEMENT: An itemization of the trustee's fee and expenses incurred at the conclusion of the foreclosure proceeding (cancellation, reinstatement, payoff or completed sale).

STRICT FORECLOSURE: Legal premise in some states that gives lender ownership to property, allows borrower to be evicted for nonpayment, and then gives lender full and complete title by waiting a set time period until borrower's right to redeem ends (lender also gets any property value in excess of what’s owed on loan).

SUBSTITUTION OF TRUSTEE: A written document that appoints a successor trustee to the trustee named in the deed of trust, (or present trustee). This document must be acknowledged by a notary public and recorded with the county recorder in the county in which the property is located.

SUMMARY JUDGMENT: Legal procedure in which one side wins lawsuit without trial by showing the case involves no material fact issues but only legal issues that can be decided by the judge; if judge agrees, then one side wins by summary judgment.

SUBJECT TO: The purchase of a property with an existing lien against the title without assuming any personal liability for the original lien's payments.

T

TEASER RATE: A temporary, artificially minimized rate of interest applicable for an initial short period at the beginning of a loan. Teaser rates are used as a borrower enticement and temporarily artificially minimize the monthly payment.

TIERED MORTGAGE RATE RE-CAST: A " Tiered Mortgage Rate Re-Cast " is currently 800 Fix My Loan's most effective and successful mortgage mediation tool. Unlike all the different possible changes theoretically possible with a loan modification (which banks are no longer granting by and large), A " Tiered Mortgage Rate Re-Cast " nearly always only results in a moderate to significant interest rate decrease, or improvment from any form of adjustable mortgage to one that has a fixed term and fully ammortized principle and interest payments for the life of the borrowers loan.

TILA: Truth in Lending Act.
(Visit http://www.fdic.gov/regulations/laws/rules/6500-200.html for details).

TITLE: The instrument that is evidence of a person's right in real property (such as a deed).

TOLL: To temporarily stop. Frequently used to describe the tolling (stopping) during bankruptcy of any further acts in foreclosure.

TRANSMITTAL FORM: This is the "Request to Prepare Notice of Default" transmittal form which is completed by the lender and forwarded to T.D. Service Company together with the note, deed of trust, assignments and other necessary loan documents. This form sets forth all pertinent information to enable us to prepare the default documents.

TRUSTEE: A neutral party who advertises the foreclosure property for sale and conducts the auction to sell said property to the highest bidder.

TRUSTEE: Person named in deed of trust or other mortgage to conduct any foreclosure proceedings and sell property to pay off mortgage loan balance.

TRUSTEE'S DEED UPON SALE: A written document which is prepared and signed by the trustee when the secured property is sold at a trustee's sale. This document transfers successful bidder at the sale; must be recorded with the county recorder in the county in which the property is located.

TRUSTEE'S SALE: The public auction of the real property, described in the deed of trust, to satisfy the unpaid obligation.

TRUSTEE'S SALE GUARANTEE POLICY: A policy of title insurance given to the present trustee when a trustee's sale proceeding has been initiated. This policy provides the names of the current owner, all liens and encumbrances recorded and other information pertinent to the foreclosure process. The information is insured to be correct by the title company.

TRUSTEE'S SALE PROCEEDING (foreclosure): The term used to describe the non-judicial procedure followed by the trustee in enforcing a creditor's rights when a debt secured on real property is in default.

TRUSTOR: The borrower (or property owner) at the time the deed of trust was created. Trustor is often used to refer to the current owner.

TS138: See "Transmittal Form."

U

UNLAWFUL DETAINER ACTION (eviction): A legal action to remove someone who has unjustly retained possession of real property after one's right to possess has terminated.

UPSET BID: A recorded bid placed after a foreclosure sale has ended that is higher than the highest bid received during the actual foreclosure sale proceedings.

UPSET PRICE: The opening bid amount that begins the auction bidding during a foreclosure sale.

V

VALID: A condition that is legally sufficient; that will be upheld by the courts.

VENDEE’S LIEN: A lien against property under contract of sale to secure a deposit paid by purchaser.

VOID: Having no legal force or binding effect. Incurable.

VOIDABLE: A condition capable of being made void, although not necessarily void in itself.

W

WORKOUT: An industry term encompassing all forms of modifying a borrowers loan Included under this term are Loan Modification, Mediation, Short Refinance, Short Sale Short sale negotiation, Loan Rescission, Cramdown, Forbearance, Deed in lieu of foreclosure, cash for keys negotiation .

WRIT: An order or mandatory legal 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 .

WRONGFUL FORECLOSURE: Foreclosure that was legally improper and caused borrower to suffer damages .  If a borrower / mortgagor legally challenges a foreclosures that has already taken place             ( where  borrower / mortgagor has already been forced from the house pledged as security ) and prevails in the legal action, the foreclosure action can actually BE REVERSED, the previously defaulted on loan be ' rescinded ' and the borrower / mortgagor / homeowner gets the home back and is again becomes the record title owner !