Category: Glossary

BENEFICIARY | the lender or their successor in interest for whose benefit a trust is created and to whom the debt is owed.

BANKRUPTCY | a legal proceeding which allows a debtor to discharge certain debts or obligations without paying the full amount or allows the debtor time to reorganize his financial affairs so he can fully repay his debts. (A bankruptcy does not discharge obligations secured by a deed of trust.)

AUTHORIZATION TO SIGN AS AGENT AGREEMENT | written document given by a beneficiary authorizing an agent to sign a document on their behalf (such as a notice of default).

ASSIGNMENT OF DEED OF TRUST | a written document, that transfers the beneficial interest in a note and deed of trust from one to another.

Zoning | Regulations that control the use of land within a jurisdiction.

Yield | The return on investment or the amount of profit stated as a percentage of the amount invested.

Wraparound Mortgage | The financing technique in which the payment of the existing mortgage is continued by the seller and a new, higher interest loan, which is larger than the existing mortgage, is paid by the borrower.

Without Recourse | Giving the lender no right to seek payment or seize assets in the event of nonpayment from anyone other than the party specified in the debt contract.

Warranty Deed | Deed in which the grantor warrants good clear title.

Vacate | To make vacant or empty.