Steps for starting a trustee’s sale. Please complete the entire form. Write legibly and use a black pen.
Your Name: _________________________________________________________________
Your Address: _______________________________________________________________
State & County where you live (for notary line on documents) ______________________________
Phone Number: ___________________ (office) ____________________ (home)
Fax Number: ______________________
E-mail address: _________________________
Who referred you to our office: _________________________________
Full Name of the Lender (if this is a corporation/LLC indicate state of incorporation)
VERY IMPORTANT: FOR ALL REAL PROPERTY WITH A FIRST DEED OF TRUST RECORDED BETWEEN JANUARY 1, 2003 AND DECEMBER 31, 2009 – the lender is required to attempt to contact the borrower in order to explore options to avoid foreclosure at least 30 days before the notice of trustee’s sale is recorded. AS THE LENDER IT IS YOUR RESPONSIBILITY TO GIVE THIS NOTICE, please provide us a copy of the contact letter(s). (HB 2626)
You must contact any servicer in writing and inform them to release any information to our office.
Provide this office with the following documents:
Copy of the attempt(s) to contact the borrower in order to explore options to avoid foreclosure.
Copy of the signed and notarized Deed of Trust (with recording information)
Copy of the signed Promissory Note
Statement as to the location of the original Promissory Note
Copy of any assignments or modifications of the Note and/or Deed of Trust (with recording information).
If this is a commercial property then include copies of all loan documents, including any assignment of leases and contracts. If none exist indicate here: _________
Copy of any assignments of Beneficial Interest (with recording information)
Copy of all demand letters for payment, or responses from property owner or the servicer.
Copy of an accounting for payments and other charges.
Copy of letter from the beneficiary to the servicer authorizing their release of information to my office.
If the lender (beneficiary) is an entity (corporation, LLC, etc),:
We need the name of the person who will sign the documents: ______________________________, their title: ________________________, the county and state where they reside: _______________________ and the address to forward the documents: _______________________________________________.
In addition we need permission from the entity to start the trustee’s sale process. This permission can be done in the form of a minute entry, corporate resolution or letter from the entity, signed by an authorized individual. The permission is to state that this office has the authority to initiate and conduct a trustee’s sales, deed in lieu, and to act on behalf of the entity in this legal processes.
We also need the following information:
Address for the property to be foreclosed on (include City and zip code):
County where the property is located _____________________________________
Tax Parcel Number(s) ________________________
Circle the type of property: raw land used as a residence used as commercial property
Is there a mobile home on the property? ( ) yes ( ) no ( ) I do not know
Are the real property taxes current? ( ) yes ( ) no ( ) I do not know
Is there insurance on this property? ( ) yes ( )no ( ) I do not know
Are you listed as a loss payee on the insurance? ( ) yes ( ) no ( ) I do not know
When you entered into this loan did you purchase a “lender’s policy” ( ) yes ( ) no
Name and address of the current property owners:
The last payment received (amount, date and what month that payment was applied to)
What is the total amount due each month? If there is a concurrent payment due please identify each separate amount and list each lender. Make sure to include the servicing and title company fees.
Have you made any oral or written agreement(s) with regarding to accepting late or partial payments? If so, what, when and how?
Have you received any bad funds from this borrower in the last 24 months? If so, how often?
Any problems that you know to exist (including litigation):
Information about the servicer (IF ANY) of this loan.
Phone: ___________________ Fax: __________________ Account number: _______________
____ Check here if you service your own loan.
The name, address and account number of any other lien-holders:
How much are you owed at this time (arrears). In calculating the following arrears use the date that the last payment was due. What is that date? ________________________
Current principal amount: _______________________
___ payments (number) from _______ (month) to _______ (month) $______/month/year
Default rate of interest from _______(date) to ________(date) totaling $__________
Late charges: (number of months) _________________ totaling $____________
Monies you have paid to senior liens ___________________________ (name) $______
Monies you have paid to HOA/taxes/insurance ___________________ (name) $______
Monies you have paid to title company/lawyers ___________________ (name) $______
Other monies you have paid ___________ ______________________ (name) $________
A retainer check of $1,500 is required to open each foreclosure file, initial discussion with client and initiate each trustee’s sale demand. This fee is considered attorney fees and it not part of the trustee’s fees.
Once we receive this information and the $1,500 fee we will open the file, send a demand letter to the borrower(s) and wait 10 days, or the amount set forth in the deed of trust, which ever is later. If the borrower(s) does not pay within that period we will move to the next step – starting the trustee sale. If this process goes to a trustee’s sale there are additional fees and costs; which start at approximately $2,000, but can be far above that depending on expenses and principal owed) .
The trustee sale process. After we receive this information we will prepare documents for your signature. We cannot start the trustee’s sale process until after those documents and a retainer have been returned to our office, a title report received and an accounting obtained from you or your servicer.There will also be a demand letter sent to the owner of the property giving them a specific period of time to bring this loan current. That period of time is determined by your Deed of Trust and/or Note (loan documents). If no time period is defined in the loan documents, then a 10 day period will be applied.The process takes at least 95 days to complete after all of the items set forth herein have been completed and returned to our office and the notice of trustee’s sale is recorded with the county recorder’s office.
VERY IMPORTANT NOTES:
IT IS EXTREMELY IMPORTANT THAT YOU KEEP CURRENT ALL PAYMENTS TO SENIOR LIEN-HOLDERS.
MAKE SURE THAT YOU KEEP TRACK OF ALL MONIES YOU SPEND AS RELATED TO THIS PROPERTY. IF YOU EXPECT TO RECEIVE A REFUND OF THESE MONIES YOU MUST INCLUDE THEM IN THE CREDIT BID WE WILL ASK FOR AT THE END OF THE TRUSTEE’S SALE.
ONCE YOU HAVE SENT THIS FILE TO OUR OFFICE YOU ARE NOT TO NEGOTIATE PAYMENT WITH THE BORROWER WITHOUT FIRST CONTACTING MY OFFICE AND DISCUSSING THE PROBLEMS ASSOCIATED WITH ACCEPTING SUCH PAYMENTS.
REMEMBER: AS THE LENDER YOU DO NOT OWN THE PROPERTY. INSTEAD YOU OWN THE NOTE AND ARE THE BENEFICIARY (LENDER) UNDER THE DEED OF TRUST.
Make sure that you include the documents described in paragraph 2 when you send this form to our office. You will receive a package of documents for signature, along with our retainer for the full amount of the trustee’s sale process. This fee depends on the principal sum owed. For instance, approximately $2,000 fees and costs for principal sum under $100,000. This fee is in addition to any fees paid to date. Please call if you have any questions.
Law Office of D.L. Drain, P.A.
2375 East Camelback, Suite 600
Phoenix, AZ 85016