The Foreclosure Process
- A Breach of the Deed of Trust MUST occur!
A breach of the deed of trust could occur when there is non-payment of the encumbrance, non-payment of property taxes, non-payment of homeowner's insurance, or a sale of the property.
2. The trustee will collect the original note and deed of trust from beneficiary; draw the Notice of Default, Declaration of Default, and Substitution of Trustee, if necessary.
A Trustee's Sale can be initiated with a lost note bond and a certified copy of the deed of trust.
3. Record the Notice of Default and order a TSG (Trustees' Sale Guarantee)
4. Send out notices to the Trustor (property owner) and all parties who have recorded a Request for Notice of Default.
These notices will be sent within ten days after the recording of the Notice of Default. The trustor must be notified of the foreclosure at this known address if it is different that the address specified in the deed of tryst. The property owner now has three months to pay all delinquent debts, plus the fees and expenses of the Trustee's Sale Proceeding.
5. Check the TSG (Trustee's Sale Guarantee) and send out the 30day notices to the junior lienholders.
6. If the trustee accepts reinstatement from the trustor, the trustee prepares and records the Rescission of the Notice of Default.
Most Trustee's Sale proceedings are resolved during the three month reinstatement period.
7. If reinstatement is not tendered by the last day of the third month, a Notice of Trustee's Sale is recorded.
The parties that received a copy of the Notice of Default will now also receive a copy of the Notice of Sale.
8. Post and publish
9. Conduct the sale following the 21st day of posting and publishing.
Just Some Info For You All!!!!!!
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