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Unformatted text preview: tute of Limitation Foreclosure Trustee’s Sale
1.Beneficiary notifies trustee default. 2.Trustee records “Notice of Default” and notifies trustor, subsequent Mortgage Sale
Court Foreclosure Sale 1.Mortgagee brings court action. 8-36 Licensing School for Appraisal, CPA, Contractors, Insurance, Real Estate, Notary, Nurse, Food Handlers, Tax and Securities 8: FINANCING INSTRUMENTS
recorded lienors and all others who have requested notice. 3.Trustee waits at least three months. During three–month period, trustor can reinstate loan. 4.After three months, trustee advertises “notice of sale” in a newspaper of general circulation once a week for three weeks and posts notice on property. 5.Trustor can reinstate the loan (pay the back payments and penalties) up until five days before the sale. 6.Trustee conducts sale and issues a trustee’s deed to the highest bidder. Note: Trustor owns and possesses property until the sale and could redeem it or sell it him or herself. Redemption Right Deficiency Judgment When title has been sold by trustee at trustee’s sale, no right of redemption exists. Not available if: 1.The foreclosure is by the trustee’s sale. 2.On purchase money trust deeds. 2.Court orders property sold. 3.Commissioner appointed by the court advertises “notice of sale” once a week for three weeks and posts notice on property. 4.A certificate of sale is issued at time of sale to the buyer. 5.Mortgagor has one year to redeem property (pay loan in full, statutory right of redemption) and to remain in possession (liable for reasonable rent). 6.A sheriff’s deed is issued one year after the sale. Mortgagor has up to one year to redeem following court foreclosure; called “Equity of Redemption.” Available in a court foreclosure unless the mortgage was a purchase money mortgage. EFFECTS OF SECURITY
A security interest such as a mortgage or trust deed affects the borrower's ability to transfer the property, creates a creditor's interest which can be transferred, and...
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- Spring '10