Certified Foreclosure Specialist
Why Use A Certified Foreclosure Specialist?
Only someone specially trained to navigate you through the foreclosure process should be trusted with such an undertaking. Buying Foreclosures can be a perilous endeavor for the untrained consumer. When a borrower uses real estate as security for a loan, three parties are involved: the trustor, or borrower, the beneficiary, or lender, and the trustee, usually a neutral thrid party.
The beneficiary selects his own trustee. The trustee is usally a neutral third party, such as an escrow or title insurance company. However, a beneficiary can be his own trustee. The beneficiary can substitute the trustee at any time by simply recording a document called a Substitution of Trustee.
If the beneficiary has to foreclose, he contacts the trustee in writing, asking him to initiate the foreclosure process. The trustee handles the entire foreclosure procedure and charges a fee for his services. The trustee also handles the reconveyance of the trust deed when the trustor pays off the loan.
Before funding any money, the beneficiary needs two documents from the trustor: a promisory note and a trust deed. The trust deed is normally recorded. The promissory note is not. The originals are held by the beneficiary, the trustor should have copies.
The promissory note is a promise by the trustor to pay the loan back under certain terms. It is the evidence of the debt. The trust deed is the security for the loan and contains, among other provisions, a “power of sale” clause. This clause enables the trustee to sell the property if the trustor breaches his contract with the beneficiary. No court action is needed. This is referred to as a nonjudicial foreclosure. The trust deed also contains the names of the trustor, beneficiary and trustee. Both the note and trust deed show the face value (original value) of the loan.
When dealing with foreclosure properties, you will need to know how to contact the beneficiary, trustor and trustee, and what questions to ask them. That is where Williams LandMark Real Estate comes in. We will be your guide through this process and make sure that you are able to optimize the opportunities in this market.
