Notice of Default - What is a Notice of Default?
Definition: Lenders file in the public records where the property is located a public notice called the Notice of Default. In some states, the Notice of Default is also attached to the home, generally on the front window, like a big scarlet letter. It states that the borrower is in default, behind in the mortgage payments, and if the payments are not paid up, the lender will seize the home.
In California, lenders typically do not file a Notice of Default until the borrower is at least 60 days behind in making payments. Lenders must then wait 90 days. During that 90-day period, the borrower has the right to make up the back payments and reinstate the loan. After 90 days, the lender is required to publish a notice in the newspaper for 20 days and then may sell the property to the highest acceptable bidder on the courthouse steps. If no acceptable bid is received, the trustee then conveys the property to the lender.

Foreclosure
the process by which a promise to repay a loan or debt secured by a deed of trust is enforced against real property. At the conclusion of foreclosure proceedings, the real property is sold to repay the debt or loan at a public auction called a foreclosure or trustee's sale.

Trustee's Sale
A Foreclosure Sale conducted by a trustee under the stipulations of a Deed of Trust. When a deed of trust is exercised, a specific trustee is designated. Upon default, the trustee is authorized to foreclose the mortgage and put the property up for a trustee's sale. The proceeds of the sale are distributed by the trustee according to the priorities listed in the deed of trust.