What Does Substitute Trustee Letter Mean??

[ClueLess]

we received a letter in the mail stating a substitute trustee was done. i understand the trustee is not the same as the original. why did this occur? and What does it mean as far as the foreclosure process? is that time finally approaching? nod was filed 2/18/09.

[cactus77727]

I received a substitute trustee too. Don't quote me on this, but I think its just a way for a local representative to administer the trustee sale/foreclosure proceedings on the behalf of the lender or bank.

Below is what an attorney had on his web site about his substitute trustee services.

Mr. {Attorney} has significant experience as a substitute trustee under defaulted deeds of trust conducting non-judicial trustee’s sales of commercial and residential real property in Arizona. He currently represents several national banks as a foreclosure trustee on a high-volume basis in every county of Arizona. He and his staff have successfully completed thousands of non-judicial trustee’s sales over the past ten years.

• monitoring and bidding at senior lienholder foreclosure sales;
• applying for excess foreclosure sale proceeds;
• pursuing mortgage deficiency claims; and
• prosecuting evictions.

Maybe someone else can elaborate more on substitute trustees and if it means anything else.

[The Professor]

Deeds of trust, at the time they are recorded, identify the trustor (borrower), the beneficiary (lender), and the trustee. The trustee is usually a corporation, and holds what has been characterized as "bare legal title" to the property. The trustee has only two jobs. The first is to execute a deed of reconveyance when the loan is paid off. This document releases the trustee's "bare legal title" to the property, conveying that interest to the property owner. The second job is when requested by the lender, to handle a non-judicial foreclosure of the property.

Trustees come and go (typically out of business). Lenders contract with foreclosure companies to handle their foreclosure. The lender replaces the existing trustee with the foreclosure company it hires to handle the foreclosure. The foreclosure company becomes the "substitute trustee" as the result of their designation in a "substitution of trustee" form that is signed by the lender, naming the foreclosure company as the "substitute trustee" once that form has been recorded.

Daniel

[susan spencer]

Professor Shays,
I had some follow-up questions in regards to the Substitution of Trustee.
1. If a property is held in a trust does it remain in tact with the reconveyance co name filed in lieu of the lender?
2. When is this document removed? If sale is postponed or cancelled and how is this verified?
3. If making payments on a forebearance, would this document remain?
Bonus question...

Is a loan looked at as being in default even under a forebearance until all monies in arrears are paid? I've been told I am in default and not in default within the same week.

Thank you kindly for educating us all. If I worked this hard in school, I would have a Masters by now. Perhaps I've racked up a year's worth of experiential credits!

[ClueLess]

so does it mean that the foreclosure will happen in the next few months? nod filed 2/18/09. so estimation around may/june for next step which is notice of trustee sale?