Advertising - (publishing of Notice of Sale): A copy of the Notice of Trustee Sale must be published once a week for three weeks prior to the sale of the property.

Chapter 7 Bankruptcy: Known as straight bankruptcy. It involves the liquidation of all assets not excempt by the bankruptcy trustee. All dischargeable debts are removed and the person filing is relieved from debt.

Chapter 13 Bankruptcy: Known as debt reorganization. Chapter 13 Bankruptcy is appropriate for individuals that have non-exempt property that they wish to retain and who have enough income to reasonably pay the reorganized debt.

Beneficiary (benny): The beneficiary in the context of a foreclosure is usually the mortgage lender.

Credit Counseling: According to bankruptcy law dating 2005, people wishing to file bankruptcy must complete an approved credit counseling course within six months of filing.

Deed in Lieu of Foreclosure: A voluntary surrender of property by an owner/borrower to a lien holder that eliminates teh need to foreclose. The lien holder can refuse to accept the deed and file a Notice of Non-Acceptance with the County Recorder.

Discounted Payoff: Payoff of a mortgage loan where the lender accepts an amount less than the actual amount owed to payoff the loan.

Equity Deficient (underwater): A property is equity deficient when the current market value is less than the existing mortgage debt.

Forbearance Agreement: Agreement between the lender and borrower that lays out a specific loan payment plan and stops the current foreclosure actions.

Judicial Foreclosure: Foreclosure action conducted through the court system instead of foreclosure sale. Judicial Foreclosures are not common in California. If a lender is pursuing a deficiency judgment they would use a Judicial Foreclosure.

Junior Liens: A lien or mortgage loan that is subordinate to a Senior Lien. Lien priority is determined by order of recordation.

Loss Mitigation: Home Mortgage Lenders limit their losses on delinquent mortgages by referring borrowers to the loss mitigation department. This department negotiates many processes involved in a short sale or deed-in-lieu of foreclosure.

NOD - (Notice of Default): A notice sent by the lender to notify the borrower of a default on their loan.

Posting: A copy of the Notice of Trustee Sale must be posted in a conspicuous place on the property to be sold at least twenty days before the sale.

Postponement: Trustee Sales may be postponed by the lien holder or by mutual agreement with the borrower.

Private Mortgage Insurance (PMI): A policy of insurance paid for by the borrower to protect the lender in the case that the borrower defaults on the mortgage. PMI is typically required when the down payment is less than 20% of the purchase price.

REO: Real-Estate-Owned - When a mortgage lender takes back ownership of the property at foreclosure auction for resale.

Reinstatement: To bring a loan current. A borrower may reinstate up to five business days before a scheduled foreclosure sale.

Short Sale: Sale of a home which is completed through negotiation with the lenders to accept less than the full amount owed by the borrower.

1099-C: IRS Form 1099-C is issued by entities that are cancelling a debt owed to them by a person receiving debt relief. The cancelled debt may not have to be reported as income. Contact a tax professional for advice on proving insolvency.

Trustee (Foreclosure Trustee): Party appointed by the lender to process the foreclosure and handle the Trustee Sale.

Trustee Deed: Deed given to the highest bidder at a Trustee Auction, whether it be a private bidder or the foreclosing lender.