Deed Of Trust Foreclosure

Deed of trust foreclosure is the basis on which a foreclosure using the powers of sale is enacted. Let us examine exactly the rudiments of a deed of trust foreclosure. There are three distinct parties involved in a deed of trust transaction:

• The borrower who is called the trustor.
• The mortgage lender who is called the beneficiary
• The holder of the property title or deed called the trustee.

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The power of sale foreclosure sees no court action as the trustee administers the remedy for delinquency. This means that if the trustor becomes delinquent, the trustee issues a demand letter, then if after 90 days or three months the arrears is not cleared moves to a full sale of property to liquidate the debt. This means that after 21 days if the property is not sold it will be auctioned. Most mortgage lenders try to use the deed of trust method because it can result in a speedy foreclosure and recovery of cash.

This can be a precarious situation especially when there is more than one lien holder on the property. However this is where the concept of Senior Lien is involved. Often called a senior loan this type of lien is where there are two or more mortgage liens on a specific property. The first lien is not necessarily the senior lien, the deed of trust would document that information and the senior lien is the one that must be satisfied or paid in full before all the other liens. , The security interest which has precedence over all other interests in that property is called senior lien. Hence if you are the holder of a senior lien you must be paid first on liquidation of the property. All other liens are known as junior liens. Foreclosed properties are on the rise and you should not wait on these matters.

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