Terms of Foreclosure and Their Definitions!

The Terms of Foreclosure and their definitions will help you understand the foreclosure process and better handle the situation you are in or are about to experience. Get a step ahead of the lenders by understanding what's going on and how to deal with it.

Most people enter a foreclosure blind, not knowing anything about the process. By that time, it's almost too late to figure out what's going on and you are susceptible to scams and expensive legal fees when all you have to do is ask for help.

The first step in learning the process of foreclosure is to learn the terms of foreclosure.

We will keep it as basic as we can so you can understand all of the terms of foreclosure you are learning.

Terms of Foreclosure
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Terms of Foreclosure You are Searching for!)

A B C D E F G H I-K L M N-P Q-R S T U-Z

Terms of Foreclosure Beginning With "T"

Tax Deed

A type of deed used to communicate title after real property is sold at auction by public authority for non-payment of taxes.

Tax Lien

A lien on real estate in favor of the state or local government that may be foreclosed on for the non-payment of taxes. This lien usually carries a very high interest rate and can be purchased by other entities as a type of investment.

Tenant

A person in possession of real property with the owner's permission, usually secured by a contractual agreement between the two. 

• Tenant at Sufferance

  A person who, after rightfully being in possession of a rented premises, continues to live in that premises after his right has terminated.
  

• Tenant at Will

  A person who holds possession of premises with the owners knowledge and permission.

Title

Paper evidence of ownership of land, usually held by the city recorder.

• Title Company

  A company that examines properties to ensure that the title to a piece of property is free and clear of any encumbrances. They also issue title insurance.




• Title Insurance

  An insurance policy that provides protection for lenders and buyers against any losses caused by defects in a title during or after the closing.

  
  

• Title Report

  A report which sets out the current state of title to a property.




• Title Search

  A search within the city's public records to determine ownership and that there are no other claims or liens against the property in question.

Torrens Title

Contains a listing of all legal instruments (mortgages, judgments, liens) that have been recorded on the property from its origin, not necessarily current liens.

Trust Account

A special account set up and used by a broker or escrow agent to safeguard funds for a buyer or seller during the purchasing process.

Trust Deed

A three party security instrument communicating the legal title to real property as security for the repayment of a loan. The owner is called the "trustor". The neutral third party to whom the bare legal title is conveyed (and who is called on to liquidate the property if need be) is the "trustee". The lender is the "beneficiary". When the loan is paid off the trustee is directed by the beneficiary to issue a deed of reconveyance to the trustor, which extinguishes the trust deed lien.

Trustee

A legally empowered person who holds or controls a piece of property for another person.

Trustee's Deed

A deed given to the successful high bidder after a foreclosure auction.

Trustee's Sale

An auction where a trustee may sell a property that has defaulted in an effort to pay the outstanding debt that is owed.

Terms of Foreclosure Beginning With "U-Z"