Foreclosure occurs when a mortgage lender seizes possession of the piece of real estate for which the borrower has taken out the mortgage. It can only happen when the borrower has fallen way behind on the mortgage payments. During the housing market crisis of 2008 and 2009, there was a lot of news coverage of big banks foreclosing on people’s houses. Foreclosure is not just for banks and big companies, though. If you have lent someone money to buy a house, and they have stopped making payments, you can file foreclosure to take the house back. Here’s what you need to know to foreclose on a deed of trust.

What our Clients Say...
“I recently required the help of A People’s Choice, Inc. and found them to be entirely professional. Everything was done in short order yet all was explained to my satisfaction. They were friendly and courteous. I am happy and impressed.”
C. Zyobel
“We love A People’s Choice. It’s legally run and professional. Everyone has to have a recommendation and license. Highly recommended.”
Christy C.
“I have worked with A People’s Choice since September 2013. They are very knowledgeable and experienced. Their work is done professionally and timely. They showed a real concern for my situation. I recommend you give them the opportunity.”
D. Echeverra
“How much is peace of mind worth to you? This company of hardworking, caring individuals will help you get the job done in the quickest, most efficient way. Conveniently located. Check it out. Thank you!”
Diana K.
“Great service. Highly professional and efficient creating legal documents. I am completely satisfied and highly recommend them to others. People who are looking for professional legal services look no further, try A People’s Choice.”
Radtech N.
“The service provided by A People’s Choice was very professional and comprehensive. We have used A People’s Choice on a previous occasion and were completely satisfied. We would highly recommend A People’s Choice to anyone!”
R. Betancourt
“Extremely satisfied with the performance of A People’s Choice. The communication was excellent and all was handled in a timely efficient manner.”
Pam T.
“I needed help understanding and filling out legal documents but I didn’t have enough money to pay for an attorney. I would highly recommend A People’s Choice for your legal documents as you will get outstanding service at an affordable price. “
Sharon B.
“My wife and I needed to have some papers filed in court but found that traditional lawyers were quite expensive. They did a very professional job completing our paperwork and I might say, at a very reasonable price.”
D. Hileman
“Made the process so easy for me. Also VERY prompt replies through email. So glad I used their services.”
Kristina C.
“I was very happy with the service received. They were extremely responsive by phone and email and completed the document in less than 24 hours! All questions were answered promptly. I would highly recommend this service to anyone needing a legal document prepared!”
M.D.
“This company is excellent! They helped me get through all of my paperwork, submitted it to the court, and now everything is complete. Everything was clear and almost too easy. I saved thousands of dollars!”
Seth M.
“I had the opportunity to use A People’s Choice again, Wow doesn’t say enough for the way the staff was able to get me in and out and all my answers answered. Very Professional, Organized and Friendly. I highly recommend!”
Debbie E.
“This team is efficient, professional, ethical and easy to work with. Any of my questions were responded to immediately. They did everything they could to help me. I highly recommend their services.”
Leigh A.
“Lightning fast response, I had my very simple document on the same day as my order for the very fair and reasonable price compared to my attorney who quoted me 3 weeks and $2500. I will definitely use these folks again and highly recommend them!”
L. Carnes
“A People’s Choice is a business that delivers what they promise. I was treated like a VIP by their staff and Sandy was the best. As for their services, they promptly delivered all of the official documents and fillings on my behalf and their price is more than reasonable.
Juan B.
“A People’s Choice prepares legal documents so you can represent yourself and still look like you know what you’re doing. I utilized their services recently and found them to be professional as well as extremely helpful. I couldn’t be happier.”
Evan J.
“A People’s Choice is awesome! They made the legal documentation process painless. I highly recommend A People’s Choice. The name says it all.”
Eric J.
“I am glad I chose A People’s Choice. They were very friendly and helped me with my documents in a very efficient way in very little time. Give them a try and you will be writing a positive review just as I did.”
D. Buelna
“Very professional, excellent follow up and easy to work with. I will recommend them often! The staff rocks!”
Gene A.
“I can’t say enough about the level of service and professionalism I received working with A People’s Choice. Emails were always responded to quickly and thoughtfully. I ended up saving a lot of money by going with A People’s Choice over an attorney.”
M. Rice
“I Recently used A PEOPLE’S CHOICE !!!! This service is absolutely AMAZING !!!! At first I was so confused , but after their process was explained to me , everything worked exactly the way they Said it would & they are there to help with the process. every step of the way , as promised. I would recommend this service 100% based on them being so efficient, professional, and always available to address any concerns that you may have . I appreciate the work that they did for me . THANKS !!!!“
R. Ivey
“A People’s Choice is a great option to get legal documents prepared inexpensively. They offer a very professional, low cost service for all sorts of legal paperwork. You won’t be disappointed and will save lots of money as compared to using an expensive attorney!”
Kathryn R.
“I was in need of some serious help and didn’t know what to do. I had contacted a lawyer and he wanted to charge me $1800.00. A People’s Choice got my paper work started and at a much lower cost. I am very grateful for the company’s services.
April R.
“A People’s Choice is extremely customer orientated and friendly. Their service was fast and reliable. in the future, should I need their services again, I will not hesitate to call them. All e-mails were answered with either a phone call or e-mail sometimes even late at night”
Tar
“I highly recommend A People’s Choice. The customer service and professionalism are exceptional. This service is only a fraction of the cost, more responsive, and better suited to quickly completing complicated court forms. “
Linda F.
“A People’s Choice – Saved me time, money & hardship. The people are professional and a pleasure to work with, I totally recommend them to everyone! I will used them for all my legal documents in the future. Thank you!”
C. Lazalde

Get help Preparing a Deed of Trust!

START MY DOCUMENTS

…or continue reading the article below to learn more about how to foreclose on a deed of trust.

What is a Deed of Trust?

A deed of trust is like a mortgage loan. The deed of trust secures payment of the loan by pledging real property as collateral. Many people use a deed of trust to secure a loan when lending a family member money to buy a house. The borrower and the lender sign a promissory note and a separate deed of trust. In the note, the borrower promises to give up possession of the house if they stop making payments. The deed of trust also outlines this promise. In other words, the deed of trust shows that the borrower is using the house to secure the loan.

In California, almost every deed of trust has a power of sale clause. This clause says that, if the borrower defaults on the loan, the lender automatically has the right to resell the house at auction.

How Foreclosure on a Deed of Trust Works

Most foreclosures on deeds on trust in California are nonjudicial foreclosures. In the nonjudicial foreclosure process, the lender first files a Notice of Default with the county recorder. The Notice of Default includes the following information:

      • The amount of money the borrower is late paying
      • The date by which the borrower must pay the overdue amount


To foreclose on a deed of trust, the lender must send the Notice of Default to the borrower by certified mail. If the borrower does not pay the requested amount within 90 days of the date of the notice, the foreclosure process continues. The Trustee sets a sale date and the next step is an open auction. In practice, it is usually the lender who repurchases it. Once you foreclose on a deed of trust, the lender can start the process to evict the borrower.

Understanding the Parties in the Foreclosure Process

Before you foreclose on a deed of trust you need to understand who the parties are to the process. A Deed of Trust has three parties – the Beneficiary (the lender who made the loan), the Trustor (the person or persons who borrowed the money), and the Trustee (this is typically a title company who makes sure that the loan is paid back.) When a borrower defaults on their loan, it is the Trustee’s responsibility to organize the sale of the property and recover as much of the loan as possible. This process is called “foreclosure”. In foreclosure, after the property sells at a foreclosure sale, the Trustee will pay off the Lender(s). The Trustor  (borrower) will receive all leftover funds.

Part 1 of the Foreclosure Process

As mentioned above, the first phase to foreclosure on a deed of trust starts with the filing of a Notice of Default. For the first ninety days after recording the Notice of Default, the Trustor can cure the default by paying all delinquent payments and the foreclosure fees. After this 90 day period, and once the Trustee records the Notice of Sale, the right to cure the loan is no longer an option.

During the initial ninety days of foreclosure of a deed of trust, the Trustor can either pay back the loan entirely or renegotiate with the Beneficiary. This will stop the entire foreclosure process. After ninety days, however, the right to force the sale to stop is limited.

Part 2 of the Foreclosure Process

After this initial 90 days, the next step to foreclose on a deed of trust is filing the Notice of Trustee’s Sale.  This document notifies the public of the sale and must continue for at minimum 21 days. The notice of sale will include a scheduled sale date for the property. The Trustee will conduct the sale and creditor(s) may bid all or part of their existing loan or loans to buy the property. In most instances, the lender who is foreclosing bids their loan balance, and the property revers back to the foreclosing lender.

It is important to note that the foreclosure process has the potential to wipe away loans that are junior to the foreclosing lender. This is because the Trustee will pay the “senior” liens before “junior” liens (those with lower priority). For example, if the first mortgage lender forecloses, junior lienholders will receive any surplus funds from the foreclosure sale after payment of the foreclosing lender’s debt. If there are no surplus funds or an overbid, the junior lienholders will receive nothing.

Start Foreclosure on a Deed of Trust

The process to foreclose on a deed of trust is very technical. If the property sells through foreclosure and the borrower believes the Trustee did not strictly follow the proper procedures, the borrower may challenge the sale.

If you need to foreclose on a deed of trust, locate your recorded document. There is usually a designated title company names as the Trustee for the loan. Contact the title company, and they will be able to help file the required foreclosure documents.

If you are loaning a friend, family member or third party money and want to secure it on real property, the documents must be correctly prepared and recorded. Contact A People’s Choice for help preparing the necessary promissory note and deed of trust. You can contact us through our website or by calling 800-747-2780.

Get help with your Legal documents today!

A People’s Choice can save you hundreds of dollars by preparing your legal documents instead of an expensive attorney!

GET STARTED!

Was this article helpful? We would love to know your thoughts! If you found this article helpful, please check the LIKE button below. Your feedback helps us plan topics for future articles.