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What do foreclosure words mean? A plain-English glossary

Foreclosure letters are full of hard words. This glossary explains the most common California foreclosure terms in simple language, from A to Z. Knowing what a word means can help you spot your deadlines and ask better questions.

By Guillermo Serafin, broker and owner of Serve First Realty. Updated October 2026.

Words from A to D

Anti-deficiency rules
California laws that, in many cases, stop a lender from collecting the rest of a debt after a foreclosure or an approved short sale. For example, after a trustee sale, the lender generally cannot collect more on the loan that was foreclosed. A separate second loan may be different.
Automatic stay
A pause on a foreclosure that usually starts when you file for bankruptcy. It is not a guaranteed cancellation, and past bankruptcy cases can limit it. Talk to a bankruptcy attorney.
Beneficiary
The lender, or whoever now holds the right to be repaid under your deed of trust.
Cash for keys
An offer from a lender or new owner to pay you to move out by a set date and leave the home in good shape. Always get it in writing.
Deed in lieu of foreclosure
When you give the home back to the lender instead of going through foreclosure. The lender must agree.
Deed of trust
The paper most California home loans use. It lets a trustee sell the home if the loan is in default, usually without going to court.
Default
Not making your loan payments, or not keeping other promises in your loan, such as paying property taxes.
Deficiency
The gap between what you owed and what the home sold for. A court order to pay it is called a deficiency judgment. In California this is only allowed in some cases, mostly court (judicial) foreclosures.
Dual tracking
When a loan company moves ahead with foreclosure while it is reviewing your complete loan modification application. California law generally does not allow this for covered loans.

Words from E to L

Eligible bidder
Under a California law called SB 1079, a tenant, a person who will live in the home, or certain nonprofits that can make an offer within a short window after a trustee sale of a 1 to 4 unit home.
Equity purchaser
Someone who buys a home in foreclosure from the owner who lives there. California law requires a written contract and usually gives the seller time to cancel.
Forbearance
An agreement that lets you pause or lower your payments for a while. The missed amount still has to be handled later.
Foreclosure consultant
Someone paid to help stop a foreclosure. In California they must register with the Attorney General, post a bond, and cannot collect fees before the work is fully done.
Homeowner Bill of Rights (HBOR)
California laws that protect many homeowners with a first loan on a 1 to 4 unit home they live in. It includes outreach before a Notice of Default, a single point of contact, and limits on dual tracking.
HUD-approved housing counselor
A trained counselor at an agency approved by the U.S. Department of Housing and Urban Development. Foreclosure counseling is free. Call 800-569-4287.
Judicial foreclosure
A foreclosure done through a lawsuit in court. It usually takes longer, and it may allow a deficiency judgment and a right to buy the home back after the sale.
Junior lien
A loan or claim that comes after the first loan, such as a second mortgage or home equity line. Losing the home does not always end the debt on a junior loan.
Loan modification
A lasting change to your loan, such as a lower rate or longer term, to make payments easier.
Loss mitigation
Your request to the loan company to look at ways to avoid foreclosure, such as a modification, forbearance, or repayment plan.

Words from N to R

Nonjudicial foreclosure
The most common kind of foreclosure in California. The trustee sells the home under the deed of trust without a lawsuit, after required notices and waiting periods.
Notice of Default
The first public paper in a nonjudicial foreclosure. It is recorded in your county and says you are behind. It is not an order to move out. A sale cannot happen until at least 3 months and 20 days after it is recorded.
Notice of Trustee's Sale
The notice that sets the date, time, and place of the auction. It must be recorded, mailed, posted, and published at least 20 days before the sale.
Notice to quit
A written notice telling someone to move out. After a completed sale, a former owner may get a 3-day notice. Tenants usually get at least 90 days.
Partial claim
A way some FHA and VA loans bring you current. The missed amount becomes a separate amount with no monthly payment, paid back when you sell, refinance, or pay off the loan.
Payoff
Paying the full amount needed to pay off the loan. This can stop a sale any time before the sale is complete.
Postponement
A delay of the sale date. Always confirm it with the trustee. A promise or a pending review is not the same as a postponed sale.
Redemption
Buying a home back after a foreclosure sale. This right exists only in certain court foreclosures and certain HOA foreclosures. It generally does not apply after an ordinary trustee sale.
Reinstatement
Catching up on missed payments plus allowed fees and costs, without paying the whole loan. In California this right generally lasts until 5 business days before the sale.

Words from S to W

Servicer
The company that sends your bill and handles your loan. Its phone number is on your monthly statement. It may not be the company that owns your loan.
Short sale
Selling your home for less than you owe, with the lender's approval. California law protects many sellers of 1 to 4 unit homes from owing the rest to the lender that approved it.
Single point of contact
The person or team your loan company must give you, under California law, once you ask for help avoiding foreclosure.
Surplus funds
Money left over after a foreclosure sale pays the sale costs and all loans and liens in order. What is left belongs to the former owner, who must claim it.
Trustee
The company named in the deed of trust that runs the foreclosure and the sale. Its name and phone number are on your notices.
Trustee's deed
The paper that gives the property to the buyer after a trustee sale.
Trustee sale
The public auction where the home is sold in a nonjudicial foreclosure. It happens on a business day between 9 a.m. and 5 p.m.
Unlawful detainer
The court case used to evict someone. You usually have only 10 court days to respond after you are served.
Writ of possession
A court order after an eviction judgment that lets the sheriff remove the people living in the home. The sheriff must give a 5-day notice first.

Want to see how these steps fit together? Read our foreclosure timeline cheat sheet or the foreclosure timeline page.

General information, not legal advice. Sources: California Civil Code sections 2923.6, 2923.7, 2924, 2924c, 2924f, 2924g, 2924h, 2924j, 2924k, 2924m, 2924.15, 1695, 2945, and 2945.45; California Code of Civil Procedure sections 580b, 580d, 580e, 715.010, 726, 729.030, 729.035, 1161a, 1161b, and 1167; 11 U.S.C. section 362.

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