Foreclosure glossary

The words you'll see on foreclosure notices and auction lists in California, Texas and Florida, in plain English. Each one links to a longer page and to the state guide where it comes up.

Certificate of title

In a Florida foreclosure sale, the clerk's document that passes title to the winning bidder.

Deed of trust

The loan document that gives a trustee the power to sell the property if the loan isn't paid; the reason Texas and California can foreclose without court.

Excess proceeds (surplus funds)

Money left after a foreclosure or tax sale pays the debt and costs; it goes to junior lienholders and then the former owner.

Final judgment of foreclosure

The court order in a judicial foreclosure that sets the amount owed and orders the property sold.

Lis pendens

A recorded notice that a lawsuit affecting a property is pending; in Florida, usually the first public sign of a foreclosure.

Notice of default

In California, the recorded notice that starts a trustee's sale foreclosure; in Texas, the letter that gives a borrower 20 days to catch up.

Notice of trustee's sale

The notice that sets the date, time and place of a trustee's foreclosure auction.

Opening bid

Where a foreclosure or tax auction starts: usually the lender's credit bid, or a minimum set by law.

Postponement

Moving a scheduled foreclosure sale to a later date, which happens often, especially in California.

Power to sell (California)

The California tax collector's power to sell property that has been tax-defaulted for five years (three for some commercial property).

Redemption

Getting a property back by paying the full debt: before a foreclosure sale, or in a few situations after it.

Reinstatement

Bringing a loan in default current by paying what's past due plus costs, which stops the foreclosure without paying off the whole loan.

REO (real estate owned)

Property a lender took back, usually because no one outbid it at the foreclosure sale.

Substitute trustee

A trustee the lender appoints to replace the one named in the deed of trust, usually to run the foreclosure sale.

Tax certificate (Florida)

A lien the Florida tax collector sells each year on property with unpaid taxes: the buyer pays the taxes and earns interest.

Tax deed

The deed a buyer gets when a property is sold at a government auction for unpaid property taxes.

Trustee's deed

The deed a trustee gives the winning bidder after a trustee's foreclosure sale.

General information, not legal advice. For your own situation, talk to a lawyer.