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Unformatted text preview: must record a deed of reconveyance within 21 calendar days after receipt of the request for reconveyance and appropriate fees. 8-12 Licensing School for Appraisal, CPA, Contractors, Insurance, Real Estate, Notary, Nurse, Food Handlers, Tax and Securities 8: FINANCING INSTRUMENTS
60 Day limit – If the trustee has failed to record the reconveyance within 60 calendar days of the satisfaction of the obligation, the beneficiary, upon written request by the trustor, shall substitute itself or another trustee and issue a full reconveyance. 75 Day limit – If a full reconveyance has not been recorded within 75 calendar days of satisfaction, then a title insurance company may prepare and record a release of the obligation, which release will be equivalent to a reconveyance of title. Violations – Any violator of these requirements shall be liable for actual damages plus $300. In addition, any person who willfully violates this law is guilty of a misdemeanor, punishable by a fine up to $400 and/or imprisonment in the county jail for up to six months. FORECLOSURE BY TRUSTEE'S SALE
One reason for the popularity of trust deeds with lenders is the availability of a non– judicial foreclosure procedure. NOTICE OF DEFAULT
The beneficiary notifies the trustee of default, then notifies the trustor and records the “notice of default.” The trustee is also obligated to provide notices to all other lienholders of record and to anyone who has recorded a request for notice of default. REDEMPTION PERIOD
The trustee must wait a minimum of three months, during which the trustor may avoid sale in various ways. The trustor may reinstate the loan by making delinquent payments and penalties up to within 5 days of the sale. The trustor may give a “deed in lieu of foreclosure” to satisfy the lien, if the lienholder is willing. The lienholder takes title subject to all other existing liens. This procedure protects the borrower's credit and avoids foreclosure costs. The trustor may pay the entire balance.
Dynasty School (www.dynastySchool.com) 8-13...
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- Spring '10