UTAH REAL ESTATE INVESTOR

I saw these 2 videos that help to explain the “credit crisis” of today’s economy. It also helps to explain why it has become increasingly difficult to get a mortgage, even for good borrowers with great credit.

Assignment of Deed of Trust: a document that transfers the beneficial interest in a note and deed of trust.

Bidding Authorization Letter: an authorization form which, when signed by the beneficiary, authorizes the trustee to make the initial opening bid at the trustees sale.

Declaration of Default: a document instructing the trustee to prepare and record a Notice of Default and, if necessary, to sell the trust property in order to satisfy the unpaid obligation.

Equity: the difference in value between the property’s worth (market value or appraised value) and the it’s indebtedness; equity that is not utilized does not really exist.

Foreclosure: a term used to describe the process used to enforce a payment or obligation on real property when a deed of trust is in default.

Full Reconveyance: a document prepared by the trustee when the obligation secured by a deed of trust is paid in full; when recorded, the reconveyance eliminates the lien from the title of the property.

Junior Lien: a legal claim upon real property recorded subsequent to another outstanding legal obligation or claim (usually a First Trust Deed).

Notice of Default: the initial document filed by a trustee that starts the foreclosure process.

Notice of Trustee’s Sale: a notice filed at the recorder’s office signifying a public auction.

Postponement: a verbal announcement made at the time and location of the trustees sale, extending the sale to a future date and time.

Publication Letter: The letter that, when signed by the beneficiary, authorizes the trustee to prepare, publish and record the Notice of Trustees Sale.

Publication Period: the period beginning after the three-calendar month default period has expired and ending when the trustee’s sale has been conducted; during the publication period, the Notice of Trustees Sale is published, posted and recorded.

Recession of Notice of Default: after a default has been cured this document, when signed by the lender and recorded by the trustee, will remove the effect of the previously recorded Notice of Default.

Reinstatement Period: the time period that commences when the Notice of Default records and ends five business days before the trustee’s sale; the default may be cured any time during this period by paying all delinquent amounts, including the trustee’s fees and costs.

Short Sale: when the bank will accept a lower payoff amount as payment in full.

Trust Deed: a contract by which real property is made security for payment of an obligation without a change of possession – a lien against the property.

Trustee’s Deed Upon Sale: the last step in the foreclosure process, this document conveys ownership of the property back to the beneficiary.