To start a foreclosure with Real Property Trustee, you will need to first complete our Foreclosure Request Form. This form provides necessary information about your loan and the reasons for default. Once contacted by one of our Foreclosure specialists, you will need to provide copies of your Note, Deed of Trust, and any assignments or other documents that pertain to your lien interest.
In most cases, you will need to sign, notarize, and return a “Substitution of Trustee”, which simply identifies Real Property Trustee as the entity you have chosen to prosecute the foreclosure on your behalf. Our office will prepare the document and send it to you shortly after the foreclosure file is opened.
Real Property Trustee, Inc. (RPT) does not typically require a deposit to start a foreclosure. All fees and costs are added to the debt and are paid by the property owner/borrower when they reinstate or payoff the loan, or if the property is ultimately sold to a third party, paid off at the foreclosure sale. For complete information on our rates, please visit our Rate Sheet.
No. Real Property Trustee is a full-service trustee company. Once you have turned the foreclosure over to us, you never have to contact your borrower again. The only exceptions to this area any contacts made directly to you by the borrower. The most important to these are attempts to make payments directly to you. If you receive payments from the borrower after starting the foreclosure, you must immediately forward them to our office. We will contact the borrower and explain why the payment cannot be accepted and what they must do to resolve the foreclosure. You will receive all copies of any correspondence between Real Property Trustee and your borrower. Should you, or any collection agency acting for you, such as a bank collection department, accept payments from the borrower, the foreclosure may be invalidated and you would be responsible for payment of our fee.
You can usually expect that the foreclosure proceeding will take approximately four (4) months from the date of recording the Notice of Default. Most borrowers stop the foreclosure before the sale by reinstating or refinancing the property to pay the loan in full. The time schedule is as follows:
— THE REINSTATEMENT PERIOD: After the Notice of Default is recorded, there is a three (3) month reinstatement period. During this time, the borrower may reinstate the loan by paying all delinquent mortgage payments, late charges, advances, foreclosure fees, etc.. Prior to any reinstatement, our office will audit the file to ensure that the borrower pays all charges due on the loan.
–THE REDEMPTION PERIOD: The redemption period is a twenty-one (21) day period during which the Trustee’s Sale is scheduled and notice of the auction is published in a newspaper for three (3) consecutive weeks. The borrower can still reinstate the loan up to five (5) business days before the scheduled auction date. You, as the beneficiary, can agree to allow reinstatement at any time prior to the sale.
Whoever buys your home cannot just change the locks to the home. The new owner must serve you with a 3-day written notice to move out and then must take you through the formal eviction process in court in order to get possession of the home. That process typically takes several weeks.
This is the clause in a deed of trust or mortgage in which the borrower pre-authorizes the sale of the property to pay off the balance on a loan if the borrower defaults. The power given to sell the property is generally given to the trustee who acts on behalf of the beneficiary by recording and sending a Notice of Default and Notice of Sale.
This is when the lender can get a money judgment from the court for the difference between the total amount the borrower owed and the amount that property was sold for at the auction. When a lender uses the non-judicial foreclosure process against the borrower who fails to pay on a mortgage loan for his or her primary residence, the lender gives up the right to collect a deficiency judgment against the borrower. In a judicial foreclosure, the lender may have the right. But most lenders prefer the non-judicial foreclosure process because it is faster and less costly.
Some borrowers try to delay the foreclosure with lawsuits challenging validity of the loan or foreclosure, or by filing bankruptcy. In either instance, Real Property Trustee maintains in-house attorneys for any such litigation or bankruptcy challenges. Our attorneys are available to you at all times and will advise as to your available remedies. Any attorney fees incurred by you are added to your total debt.