Unformatted text preview: tice of sale. Reinstatement within the five-day period preceding the sale would be at the discretion of the beneficiary and might still be allowed. Once reinstated, the trustor is again in good standing. NOTICE OF SALE (21 DAYS)
No less than three months after the notice of default is recorded, a “Notice of Trustee’s Sale” is given in the same manner as the notice of sale in a foreclosure. During the three month reinstatement period, the trustor may reinstate the loan.
Dynasty School (www.dynastySchool.com) 14-41 REAL ESTATE FINANCE The Notice of Sale is a recorded notice stating the time, place, property description and type of sale. The notice must be published in a newspaper of general circulation once a week, not more than seven days apart, during the 21-day publishing period. A copy of the notice must also be posted on the property and in a public place, such as the city hall. TRUSTEE’S SALE (FINAL)
A trustee’s sale is an out of court procedure under the “power of sale clause” in the deed of trust and promissory note. The trustee’s sale is held at the time and place stated in the notice of sale. At the public sale, the trustee states the purpose of the sale and describes the property to be sold. All bids must be in the form of cash or cashier’s checks. The first deed holder may bid up to the total amount of the debt without cash. Because it costs the first trust deed holder nothing more than what he or she is already owed, that person will usually make the first bid. The highest bidder obtains the property and will be issued a trustee’s deed. Any money more than the amount owed is reimbursed to the trustor. The new owner is entitled to immediate possession. At the sale itself, payment to the amount of the debt owed is by cash, cashier’s check from a qualified lender or a cash equivalent designated in the notice of trustee’s sale as acceptable to the trustee. Figure 14-1 Trustee’s Sale Timetable TRUSTEE’S SALE TIMETABLE
Notice of Default 3 MONTHS
Reinstatement Period (Waiting Period) 21 DAY...
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This note was uploaded on 12/30/2010 for the course SOC 101 taught by Professor Zhung during the Spring '10 term at Punjab Engineering College.
- Spring '10