Lemon Landlord - Glossary of Terms

Auction - The process of selling property at a public sale to highest bidder.
Date of Default - The initial date in which the borrower fails to make the payments as agreed to in the original promissory note that secures the real property.
Date of Trustee Sale - The date at which the auction of real property is to be conducted by the trustee. Also known as a Sheriff's Sale. (Note: Many times this date gets changed)
Deed of Trust - A written instrument legally conveying property to a trustee, usually for the purpose of securing a mortgage or promissory note.
Default - The failure to fulfill a duty or promise, or to discharge an obligation; omission or failure to perform an act. In property foreclosure, it’s usually the failure to pay loan installment repayments when they become due.
Foreclosure - The process by which mortgaged property enters into the possession of the mortgagee without right of redemption by the mortgagor, usually for reason of delinquency in mortgage payments.
Lease - A contract that grants the right to use or occupy a property for a specified period in exchange for a specified rent payment. Note: Lemon Landlord never recommends a tenant to break a lease, even in the event of a known pending foreclosure.
Mortgage - Instrument in writing, duly executed and delivered, that creates a lien on real estate as security for payment of specified debt, usually in the form of a bond.
Owner - The current recorded legal owner of the property.
Property or Real Property - A piece of land or real estate. It may be zoned for residential or commercial use. Its address should be verifiable.
Property Report - Contains the Status of a property with relevant information. (see Status)
Record - If our system finds a record, it means that the inputted address has been verified as a valid address. This does not necessarily mean that the property is in foreclosure. To access the foreclosure status of a property, a Property Report needs to be purchased.
Search - A search for an address validates the inputted address as a real property. If our system verifies the address, a Property Report will be produced and available for purchase. (see Record)
Status - We issue 3 status types:
1. OK - Simply means that according to our records the property that you are inquiring about is not currently in foreclosure.
2. Warning - 3 possible scenarios. If you receive a “warning” status, we strongly recommend that you take further action on your own

to determine which below stated condition applies to your property in question.

a) The warning notice is given when the real property that you are inquiring about has passed the original recorded foreclosure date shown in our records. In this instance, you definitely want the landlord to prove that they have recently purchased the home at the trustee sale. He/she should be able to produce a deed proving ownership and the date that the property was purchased.

b) The warning notice could also mean that the trustee sale has been postponed to a date in the future and has not been sold yet.

c) Lastly, the warning notice could also mean that the owner has paid all past debt owing in regards to the trustee sale and is no longer in the foreclosure process. In this case the sale has been cancelled. By contacting the trustee in charge of the sale, a person can verify if a property has been sold, postponed, or cancelled.

3. In Default - The property you are inquiring about is in the foreclosure process and is scheduled to be sold at a trustee sale.
Trustee - Person named in deed of trust or other mortgage to conduct any foreclosure proceedings and sell property to pay off mortgage loan balance.
Trustee Sale - Non-judicial action in which the trustee may auction and sell property secured by a deed of trust subsequent to default in terms and conditions of loan.
Trustees Deed - Type of deed issued to buyer at foreclosure by trustee.

Lemon Landlord Glossary of Terms