Foreclosure Procedures and Office Policies. Bob Sagel, Morgan County Public Trustee

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1 Foreclosure Procedures and Office Policies Bob Sagel, Morgan County Public Trustee

2 Starting a Foreclosure Second Mailings and Publication of Combined Notice Cures of Defaults Withdrawals Deferments Loss Mitigation Foreclosure Sales Rescissions Lienor Redemptions Confirmation Deeds Bankruptcy

3 Verify that proper documents are filed (receipt) Proof all of the documents Create foreclosure file and record (paper or electronic) Assign Foreclosure Sale number Determine mailing, publication, and sale dates Record Notice of Election and Demand for Sale Create and mail Combined Notices Notify attorney or holder that foreclosure is started Account for fees and costs

4 Receipt for Documents 1 Original Deed of Trust and any Recorded Modifications/Partial Releases, OR a Certified Copy from Clerk b Copy with Cert of Qualified Holder 2 Original Evidence of Debt and any Modifications/Assignments/Indorsements, OR a Copy with Cert of Qualified Holder b Certified Copy of Judgment c Lost Instruments Bond 3 Cover Letter 4 Statement of Current Owner/Address 5 Mailing List 6 Notice of Election and Demand for Sale 7 Deposit Certificate of Qualified Holder 9 Statement of Loan Servicer 10 Legal Description (Exhibit A) 11 Deferment Eligibility Notice 12 Scriveners Error Affidavit

5 Second mailings of Combined Notice days prior to sale date Use original mailing list if no amended mailing list DO NOT MAIL if foreclosure is in deferment Publications 1 st publication days prior to sale date Send to newspaper in sufficient time Review the publication Send copy of Affidavit of Publication to attorney

6 Receipt of Intent to Cure Default Request Cure Statement (due in 10 business days) Receipt of Cure Statement Prepare and mail Notice Regarding Cure Statement Receipt of cure payment Stop publications Notify attorney: Request a Withdrawal & final statement Receipt of Withdrawal and final statement Record the Withdrawal Process final accounting

7 Receipt of Withdrawal from attorney Stop publications Receipt of balance of fees and costs Record the Withdrawal Return original Deed of Trust and Evidence of Debt Close the file Administrative Withdrawals At least 45 days after sale can no longer be held Send letter to attorney No response record withdrawal after 30 days Response record withdrawal after 90 days

8 Receipt of Affidavit of Posting If not received within 20 days of filing, notify attorney one time and continue sale week to week until filed Receipt of Certification of Qualification - Counselor Suspend or stop publications Suspend 2 nd mailing Continue sale week to week until deferment is terminated Receipt of Notice of Termination or 90 days later Set new publication dates (use current continued date) Create and mail a new Combined Notice

9 Receipt of notice of dual tracking from borrower Send inquiry to attorney or holder/servicer Response to inquiry Receipt of acknowledgement of dual tracking Sale to be withdrawn Receipt of statement disputing dual tracking Proceed with the sale No response to inquiry Continue sale week to week and send certified letter to attorney Receipt of notice of non-compliance from attorney Reschedule sale (at least 7 days after mailing CN) Create and mail an amended Combined Notice (within 10 business days)

10 Receipt of written bid and Order Authorizing Sale Due by noon 2 business days before the sale Sale Day - Read or distribute sale information Declare property sold to highest bidder Create and record Certificate of Purchase Attach OAS and mailing lists Cancel ORIGINAL Deed of Trust Mark ORIGINAL evidence of debt Mark cancelled or show deficiency information Notify attorney of sales results

11 Receipt of Notice of Rescission (purchased by lender) Due within 8 business days after the sale Record the Notice of Rescission Mail copies of the Notice of Rescission Make notation on original Deed of Trust and evidence of debt Reschedule the sale 30 to 45 days after receipt of Notice of Rescission Publish one time Within 20 days but at least 10 days prior to sale Create and mail a new Combined Notice

12 Receipt of Intent to Redeem Due within 8 business days after the sale Must have copy of recorded lien and any assignments Must have notarized affidavit of amount due on lien Send request for Redemption Statement to purchaser Set redemption dates (5 business days starting day 15) Receipt of Redemption Statement Due within 13 business days after the sale Receipt of the Redemption Due by noon the last day of the redemption period Create and record the Certificate of Redemption Send payment to purchaser/last redeemer Issue Confirmation Deed to purchaser/last redeemer

13 Prepare and record the deed 10 to 15 business days after title vests Assignments due within 10 business days after title vests Must be dated, signed/notarized or recorded before title vests Receipt of notice that Certificate will not be assigned May issue the deed after title vests prior to 10 th business day Close file

14 Receipt of notice of bankruptcy Determine status Publications are complete Continue sale week to week until out of bankruptcy Publications not started or not completed Stop publications and mailings Announce indefinite stay on scheduled sale date Re-record NED and restart sale when out of bankruptcy Sale held in violation of bankruptcy stay Receipt of request for rescheduled sale No later than 60 days after out of bankruptcy Set new sale date 24 to 49 days after receiving request Mail a new Combined Notice within 10 days after receiving request