National Short Sale Experts

National's Leading Real Estate Company Specializing

(877) 663-9366


Short Sale and Foreclosure Terms

Short Sale

We want to assure your educated on your options


short sale experts

We have a proven
track record

Learn how we have successfully helped hundreds of homeowners complete a short sale transaction. Also learn how we obtained short sale approval letters from the lender(s). We have the resources and experience to help you sell your home and you pay nothing out of pocket.


Advertising/Publishing –A copy of the Notice of Trustee Sale must be available at one point in a week for a time span of 3 weeks

Affidavit – A written statement that has been put under oath by a person allowed to oversee a pledge. Such as a notary public.

Amortize – In which an amount is gradually condensed in order to pay off a loan over a gradual period of time. This is usually done through an intermittent payment of interest as well as principal or payments to a sinking fund.

Arrearage – When an accrual of interest results in a certain outstanding balance.

Bankruptcy Chapter 7 – Known as a straight bankruptcy. This includes insolvency of the non-exempt by the bankruptcy trustee, who in turn distributes the income to capable creditors.  All debts that can be discharged are discharged. The person or persons who obtain the filing are given a “fresh start”

Bankruptcy Chapter 13 – A Chapter 13 bankruptcy is also known as a debt reorganization, and is usually applicable to those individuals who would like to maintain non-exempt property. They will also have enough revenue to give to the reorganized debt after they have covered their expenses related to day-to-day living.

Beneficiary – This is when the recipient in a trustee association is the mortgage lender.

Comparative Market Analysis (CMA) – A market evaluation of real property done for the reason of creating a viable value assessment of the property in the market.

Complaint –A formal charge or accusation relayed as pleading that puts forth a plaintiff’s case or reason for action in the form of a lawsuit.

Credit Counseling – According to the October 2005 bankruptcy laws, anyone desiring bankruptcy must complete an approved credit counseling course within the six (6) months preceding filing.

Deed of Trust – The Deed of Trust is the article kept by the lender to prove the loan has been extended and taken. Borrowers also sign a Promissory Note.  The Deed of Trust and the Promissory Note will include the terms of your loan.  For a property there may be more than on Deed of Trust.

Deed in Lieu of Foreclosure – The intentional submission of property by an owner/borrower to a lien holder that does away with the need to maintain foreclosure action by the lien holder.  The lien holder can turn down the choice to accept the Deed in Lieu and file a Notice of Non Acceptance with County Recorder.

Deficiency Judgment – Capital granted by a court against a borrower for the balance that is still there after the guarantee that secures a debt has been liquidated and processed into the final loan amount.

Discounted Payoff – The completed payment of a mortgage loan where the lender takes on an amount less than the actual amount owed to satisfy the loan.

Equity – The remaining worth of a property further than any mortgages or liens.

Escrow – The escrow procedure produces the desired documents and goes along with the escrow instructions preceding the “closing” and before funds can be sent out.  Upon closing, funds and title are passed between the principals.  An escrow is transaction of property is a transaction involving a seller and a buyer, who have an obligatory contract with each other, and an escrow holder who is an impartial stakeholder, who holds the other parties’ money, written instrument, or property, and then delivers them after the conditions between the two contracted parties are satisfied with each other.

Forbearance Agreement – T his is a union between someone who is borrowing and mortgage holder which intends to establish a particular loan payment plan while also putting a stop on the foreclosure action. This is only done when the terms of the union have been satisfied by the borrower.  The lender could consent to a provisional lessening or suspension of the borrower’s payments.  Over an agreed-upon span of time the delinquent amount will then be repaid or added to the back end of the mortgage. Borrowers may be able to obtain this measure if they can prove a temporary obstacle, such as a job loss, has occurred.  Information to prove that they would be able to handle a new payment plan must be given to the lender.

Judicial Foreclosure – Instead of being done through a foreclosure trustee, a foreclosure action performed in the courts.  Most notably with residential properties Judicial Foreclosures are extremely rare in California. If a lender decides to go after a deficiency judgment, it would be through a Judicial Foreclosure.

Junior Liens – A lien is generally a mortgage loan that is subordinate to a Senior Lien. Most often it is a first mortgage.  Lien priority is normally recognized by order of recordation.

LIBOR (London Interbank Offered Rate) – The interest rate charge among banks for a short-term Eurodollar loans.   LIBOR is a very frequent directory for adjustable rate mortgages (ARM).

Lis Pendens – An indication to the general public that is filed by the court of jurisdiction to indicate that court action is pending regarding a specified property.

Loss Mitigation – Lenders seek to minimize losses on delinquent mortgages by establishing resolutions with borrowers through their Loss Mitigation Departments.

Mailing – A reproduction of the Notice of Trustee’s Sale must be mailed (certified and first class) at least 20 days prior to the foreclosure sale to the borrower. Also to anyone who was at liberty to be given a copy of the Notice of Default and Secretary of State and IRS if appropriate.

NOD – Notice of Default

Notice of Default – An authorized notice filed and recorded by a designated trustee at the request of a lender that declares a lender has begun foreclosure action.

Notice of Trustee Sale – The specific date, time, and location of an official notice that is posted, mailed, published/advertised and recorded by trustee at the direction of lender to indicate that a lender plans to sell a property at a public auction.

Principle Balance – The face value of a loan payoff amount before applicable interest, arrearage, late charges, or other additional costs are added.

Posting – Twenty days prior to a sale, a copy of the notice of sale must be posted in a obvious location on the property that is to be sold.  A copy of the notice must also be set up in at least one public place in the city where the property is to be sold twenty days before the sale.

Postponement – Trustee Sales may be postponed by the first at the direction of the lien holder. Notice may be given in advance or at the instance and site intended for the sale.

Private Mortgage Insurance (PMI) – The borrower is protected in the event the borrower defaults on their mortgage with a policy of insurance paid for by the borrower. PMI is typically requisite by the mortgage holder in the event that the down payment is less than 20% of the purchase price.

Qualifying Funds – A bidder intending to order at a trustee sale must have qualifying funds available at the sale.  Funds that qualify include cash or cashier’s check(s) drawn by the State or National Bank, a check(s) drawn by a State or Federal Credit Union or check drawn by a State or Federal Savings and Loan Association, Saving Association or Savings Bank specified in Section 5102 or the Financial Code and allowed to operate in the State of California.

REO –An REO (real-estate owned) is when a mortgage lender has gained a property. Mostly likely through foreclosure.

Reinstatement – A Borrower may restore up to five (5) business days before foreclosure sale to make a loan up-to-date.

Short Sale – The owners sell their property for less than the balance owed.  The lender agrees to the sale proceeds as full satisfaction of the loan.

Subordinate Lien – A lien position that is fulfilled subject to fulfillment of another lien, usually filed subsequent to a lien held in a priority position.

1099-C –IRS Form 1099-C is issued by those canceling all or part of a debt to the person receiving debt relief.  Note:  The cancelled debt may not need to be reported as income due to the Mortgage Forgiveness Debt Relief Act of 2007 or for reasons of insolvency.   Contact your tax advisor for further information on a 1099-C. Contact us today for a recommendation if you do not have a tax advisor.

Trustee (Foreclosure Trustee) – In the event that a mortgage reaches the default status, A foreclosure Trustee is chosen by the mortgage company for the purpose of processing the foreclosure.

Trustee Deed – The deed awarded to the highest bidder at auction or the foreclosing lender upon completion of the foreclosure.

Trustee Sale – Conducted by the Trustee.  The property is either sold at auction to the highest bidder or r taken back by a foreclosing lender.

Free Information

About Short Sales

Get our Guide and learn
First Name:
Last Name:

List your home

List your home for sale.

Right now is the perfect time to put your house up for sale. Get in touch with one of our short sale specialists to assist you with the short sale transaction process.

What are your options?

Try other options before conducting a short sale.

See what other options are available to you before starting the short sale process. Your lender may work with you on payment and interest options. Learn More

Foreclosure timelines

Late on payments? Know the foreclosure timeline in California.

Is your home about to go to auction? Avoid foreclosure by knowing the commoon foreclosure timelines. Learn More