Glossary of foreclosure terms: T
teaser rate: Low initial interest rate on a loan, designed to tempt a borrower into the agreement.
termination date: The last day of an event or procedure; as used here, the day that someone makes the last payment on a loan.
third party: Party involved in a legal matter other than the two principals.
three-party loan: See three-party instrument.
three-party instrument: Legal document that involves a party in addition to the two principals, such as a deed of trust.
title search: Examination of public records to determine the kind and extent of encumbrances on a property, along with its ownership status and other matters that affect it.
top portion: Amount of a loan that's greater than 80 percent of the property's value. For example, a home with a value of $100,000 and loans owing of $95,000 would have a bottom portion of $80,000 and a top portion of $15,000.
trustee: Disinterested third party that's authorized to help principals fulfill an agreement. Trustees figure in two ways relevant to homeowners. First, the trustee is the party that administers the deed for a home that's secured by a deed of trust. It gives the "owner" full ownership when a property's loans have been completely paid off, or initiates foreclosure (under direction of the beneficiary) if the borrower defaults. Second, a bankruptcy trustee is named by the court to oversee the finances of someone who files for bankruptcy.
trustee's deed: Document given to the winner bidder at a nonjudicial foreclosure sale. The new owner immediately has full rights to the property, although an eviction might be necessary to expel the old owner and take possession. See also trustee's deed.
trustee's sale: Foreclosure sale for nonjudicial foreclosures, run by a trustee. See also sheriff's sale.
trustor: The party that owes money in a deed of trust; typically, the property owner.
Truth-in-Lending (TIL) form: See Truth-in-Lending disclosure statement.
Truth-in-Lending Act: U.S. law passed in 1968 that orders lenders to put together a Truth-in-Lending disclosure statement for every qualified loan, giving details on certain frequently misunderstood parts of the lending contract
Truth-in-Lending disclosure statement: One-page document provided by a lender that describes the features of a loan, including its total cost of credit, effective APR, and the existence of certain clauses. Required on most home loans as the result of the Truth-in-Lending Act.
