Foreclosure Terms & Definitions

				Immediate Foreclosure Solutions Rialto, CA (951) 235 - 9430

	DEFINITION OF TERMS	Advertising Deed in Lieu of Foreclosure Deficiency Junior Liens Mailing Manner Notice of Sale	Place Postponement Recording Redemption Reinstatement Time Trustee

HOME HELP CONTACT US FAQs HELP AREA FORMS TERMS SCAMS ASSISTANCE AVOID SELF DEFENSE STATES	These definitions apply to California foreclosures and may differ slightly in other states. For information specific to your state, click on STATES to the left. TRUSTEE A trustee is named to arrange the sale of the real property. top of page NOTICE OF SALE The notice of sale must contain the name, street address and phone number of the trustee conducting the sale and the original trustor, along with a statement warning borrowers that their property is about to be lost at a public foreclosure sale and to contact a lawyer for an explanation. If no street address exists, the notice must state the address of the beneficiary from whom a set of directions to the property may be obtained, if requested in writing, within ten days from the first publications of the foreclosure notice. top of page ADVERTISING A copy of the notice of sale must be posted in a conspicuous place on the property at least 20 days before the sale. If access to the property is restricted by means of a central guard gate, then the notice must be posted on the guard gate. An additional copy of the notice must be posted at one public place in the city where the property is to be sold (or judicial district in rural areas) at least 20 days before the sale. top of page DEED IN LIEU OF FORECLOSURE A voluntary transfer of property to the lender. Read the detailed discussion on the issue by the Vice President and Special Counsel of First American Title. RECORDING A notice of trustee sale must be recorded at least 14 days before the sale. top of page MAILING A notice of trustee sale must be mailed by certified mail, return receipt requested, 20 days before the foreclosure sale to the borrower, to anyone who requests notice or recorded a request and to the trustors, beneficiaries or parties at interest. top of page TIME All sales under a power of sale in a deed of trust will be made between the hours of 9:00 a.m. and 5:00 p.m. on any business day, Monday through Friday, at the time specified in the notice of trustee sale. top of page PLACE The sale shall commence at the location specified in the notice of sale. top of page MANNER The sale must be made by a public auction to the highest bidder. The trustee has the right to require every bidder to show proof of ability to pay the full bid in cash, cashier’s check or bank checks. Each bid is, by law, an irrevocable offer to purchase. A higher bid cancels any earlier bid. It is unlawful and a criminal offense ($10,000 or up to one year in jail) to offer anyone consideration not to bid, or to fix or restrain the bidding process in any manner. top of page POSTPONEMENT Sales may be postponed by announcement at the time and location specified for the intended sale. The borrower may postpone the sale in order to obtain cash, provided the written request for postponement identifies source from which the funds are to be obtained, and the postponement is only for one business day. The borrower may obtain one such postponement. top of page REINSTATEMENT Debtors may reinstate up to five days before non-judicial foreclosure sale. In practice however, most lenders will allow reinstatement up until the moment of the sale, with specific conditions. top of page JUNIOR LIENS Junior lien holders may not redeem after the sale, so they may try to protect themselves by: (1) advancing funds to bring the senior loan payments current, then foreclosing for the sums advanced in addition to their lien (2) bidding at the foreclosure sale so the price will be sufficient to pay off the senior and the junior liens or (3) acquire the property by bidding at the foreclosure. top of page DEFICIENCY Lenders may not seek a deficiency judgment. top of page REDEMPTION A borrower’s right to redemption is terminated when a deficiency judgment is waived or prohibited. After a non-judicial foreclosure sale, California homeowners have no right to redeem the propety.