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Unformatted text preview: “Declaration of Default”, which states the reason for the default. The beneficiary includes the original note and trust deed with the declaration. The “notice of default” is recorded by the trustee and sent by registered or certified mail to all of the following: The trustor. Any successor in interest to the trustor. 14-40 Licensing School for Appraisal, CPA, Contractors, Insurance, Real Estate, Notary, Nurse, Food Handlers, Tax and Securities 14: THE LOAN PROCESSING
Junior lien holders. The State Controller (if there is a tax lien on the property). Anyone who has filed a “request for notice” with the county recorder. REQUEST FOR NOTICE (PROTECTS 2ND TD HOLDERS)
When a “request for notice” is recorded, the trustee is required to notify all persons who request notice if a “notice of default” is recorded on a particular property Any person who has an interest in a particular trust deed, usually a second or third trust deed holder, should be informed if the buyer is not paying on the first trust deed. This information not only informs the junior deed holders of nonpayment on the first trust deed, but it also allows them time to prepare to purchase the trust deed at the forthcoming trustee’s sale. It will also give them time to start default actions on their own junior trust deeds. This request for notice is recorded in the county recorder’s office where the property is located. If a seller takes back a second or even a third trust deed, thereby becoming a junior trust deed holder on the property that person has just sold, that person would be wise to record a request for notice. Some request for notice forms are incorporated into the trust deed form, so the request for notice is automatically filed. TRUSTOR’S RIGHT OF REINSTATEMENT
A debt under a trust deed can be reinstated by a trustor if payment of the overdue amount is made at any time after the notice of default is recorded, but no later than five business days prior to the date of sale in the subsequent recorded no...
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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