The words on your notice, in plain English.

Notice of Default (NOD)

This is the first legal notice in a California foreclosure. Your lender records it after you fall behind. It starts the clock. A sale cannot be set for at least three months (Civil Code §2924). The full process usually takes at least about 110 days, and often longer. This is education, not legal advice.

Notice of Trustee's Sale (NOS)

This notice sets the date, time, and place of the auction. It is posted at least 20 days before the sale (Civil Code §2924f). It is also mailed, published, and recorded so you can see it.

Trustee

The trustee is a neutral third party named in your loan papers. They handle the foreclosure steps if you fall behind. The trustee is not your lender and not you.

Beneficiary

The beneficiary is the lender or investor who is owed the money. Your deed of trust names them. They are the one who benefits when the loan is paid.

Reinstatement

Reinstatement means paying all the past-due amounts, plus fees, to bring the loan current. In California, this right to catch up ends five business days before the sale (Civil Code §2924c).

Arrears

Arrears are the payments you have missed. It is the past-due amount you owe your lender. People also call this being “behind.”

Short sale

A short sale is selling your home for less than you owe. It only works if your lender says yes. The lender must agree to accept less. It is their decision, not a sure thing.

REO (Real Estate Owned)

REO means “real estate owned.” It is a home the lender takes back when no one buys it at auction. The lender then owns it and tries to sell it.

BPO (Broker Price Opinion)

A BPO is a Broker Price Opinion. A real estate professional estimates what your home is worth. Lenders often order one before a short sale.

Equity

Equity is your home's value minus what you owe on it. If your home is worth more than your loans, you have equity. That value belongs to you.

Lien

A lien is a legal claim against your property for a debt. Your mortgage is a lien. Unpaid taxes or contractors can create liens too.

Junior lien

A junior lien is a debt that comes after your first mortgage. A second mortgage or a HELOC is common. If the home sells, older liens get paid first.

Deed of trust

In California, most home loans use a deed of trust. It lets a trustee sell the home if you fall behind. It names you, the lender, and the trustee.

Auction / Trustee sale

A trustee sale is a public auction of your home. The highest cash bidder can buy it. The date is set in the Notice of Trustee's Sale.

Postponement

Sometimes a trustee sale is moved to a later date. That change is called a postponement. It can happen for several different reasons.

Deficiency

A deficiency is the gap between what you owed and what the sale brought in. California law limits deficiencies in some cases. A lawyer can explain how the rules apply to you. This is education, not legal advice.

Loan modification

A loan modification changes the terms of your current loan. It may lower the payment or the rate. Your lender decides whether to offer one.

Forbearance

Forbearance is a pause or a cut in payments for a set time. You still owe the paused amounts later. Your lender must agree to it.

HUD-approved housing counselor

A HUD-approved housing counselor gives free or low-cost help. They are trained and approved by the U.S. government. They can review your options at no cost to you. This is a good first call.

Homeowner Bill of Rights

California's Homeowner Bill of Rights gives borrowers certain protections during foreclosure. It sets rules that lenders must follow. This is education, not legal advice. A lawyer can explain how it applies to you.

Met a word we missed? Ask us — or see the whole guide.

Gay-Lynn Chavez, CA DRE #01433767 (eXp Realty of California, Inc.); Louis Chavez, CA DRE #01949822 (eXp Commercial of California, Inc.); Francisco Williams, CA DRE #01979442, NMLS #1858674 (KW Commercial Beverly Hills / Williams Capital Advisors). Educational, not legal advice.