- BANKRUPTCY: a legal proceeding that allows a debtor to eliminate certain debts and obligations without having to paying the entire amount or allows the person in debt time to reorganize so he can pay his debts off in full.
- FORECLOSURE (non-judicial): a term used to describe the process followed in collecting creditor's debt secured by any lien on property that is in default. The correct term for a "Foreclosure" involving a deed of trust is a "Trustee's Sale Proceeding."
- JUNIOR LIEN: legal claim on real property recorded subsequent to another legal claim on the same real property. It basically means another party has legal claim on the property before the junior lien.
- LIMITED POWER OF ATTORNEY: a legal recorded document that authorizes someone to act as attorney-in-fact in a specific manner for someone else.
- NOTE: a written document that promises to pay with the terms listed.
- NOTICE OF DEFAULT: a written document that gives notice of a borrower's failure to perform his obligation under a deed of trust.