A Trustee of Foreclosure is an individual who is appointed by the courts to serve as a mediator or referee in foreclosure proceedings. Foreclosure trustees have special legal duties to the entities as their trustee. What are these special duties of foreclosure trustees? At most real estate closings, the document called a Deed of Trust is presented by settlement lawyers to borrowers. It is imperative that this document be filled out accurately and exactly as it is required. The proceeds from the Deed must be applied first to all necessary expenses such as accrued interest and expenses. If the proceeds do not cover these expenses, then the remaining balance is due from the proceeds. A foreclosure trustee is required by law to apply the proceeds of the loan to the original note and to any necessary expenses related to the foreclosure. This applies to all funds collected from the proceeds and not just the proceeds from the initial loan.
There are several ways for property owners to retain the services of a foreclosure trustee. One method is by hiring a certified public accountant to act as the trustee. This is often the preferred method as the public accountant will likely already have all necessary fees associated with his or her role as trustee. A second method is for property owners to appoint a licensed real estate agent to act as the foreclosure trustee. This can be effective, but individuals should be careful to check the credentials of the agent before retaining their services. When should a homeowner to retain the services of a foreclosure trustee? The first time that a borrower retains the services of a trustee is when the lien holder files a lawsuit against the homeowner. The filing of such a lawsuit is often done after a notice of default has been filed with the court. Once the lawsuit has been filed in the courts, the court usually allows a trial to be held to determine whether or not the mortgage contract is in fact a valid contract.
the role of a foreclosure trustee
After the foreclosure is issued and the mortgage contract is found to be an invalid contract, the owner may request that the foreclosure be set aside. In most cases, a trial will then be scheduled to determine if the foreclosure should be allowed to go forward. At this point, the homeowner may decide to hire a foreclosure trustee to review the foreclosure process. Some states require that a public auction to be held to sell the house at a public auction. If a public auction is required in Virginia, this must be done at a date and time specified by the lender. Another instance in which borrowers may decide to hire a substitute trustee to oversee the foreclosure process is when they are not comfortable with retaining the services of the original lender. In many cases, borrowers who have been late on their mortgage payments choose to become current, but do not realize that the new payment schedule may cause them back late fees. At this point, it is often necessary for the borrower to seek the help of a third party to handle the foreclosure. There are a few different options available for the borrower. A new loan can be applied for with another lender who assumes the debt. A deed in lieu of foreclosure can allow the borrower to return the property without having to go through the foreclosure process.