The Notice Of Trustee Sale is the second phase of the foreclosure process because it’s the next step before the sale. This phase is a very critical one because upon issue of this notice, the cure date has expired and most lenders call the entire note due (not just the delinquent amount).

After it is recorded, strict guidelines set by the State of residence must be followed in order to ensure the process and validity of the Trustee Sale, including a specific time line and careful documentation. In accordance with the first requirement, the Trustee mails copies of the Notice of Trustee Sale and a Notice of Default to all parties with a vested interest in the subject property.

The Notice of Default identifies the Deed of Trust and the nature of the default, and gives an itemized account of the arrearage and the foreclosure costs and fees. Time lines and regulations vary by state but generally loans that are being foreclosed non-judicially may be reinstated any time up through 11 days before the Trustee’s Sale.

Within 30 days a copy of the Notice of Default is sent by certified and regular mail to new owners and all junior lien holders to the Deed of Trust being foreclosed. A Trustee’s Sale Guarantee Report is ordered from the title company providing all title information.

The recordation of the trustee’s deed is a ministerial act. IN general the trustee’s sale is deemed perfected at the date and time of the sale if the trustee’s deed is recorded in the county of the subject property within 15 days of the date of the sale.

This entry was posted on Thursday, April 23rd, 2009 at 7:01 pm and is filed under Foreclosure. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.