When property has been placed into a trust, then the Trustee gains legal control to make decisions on the behalf of the beneficiary. If a beneficiary falls behind in making payments on his property in a trust, then the property can be foreclosed upon. Here is a description of the Trustee’s Deed Upon Sale.
Property in Trust
A Trustee holds property on behalf of another party. This could be for an underage child or a senior citizen as a method of estate planning. The Trustee’s Deed Upon Sale is a process for transferring property that has been foreclosed upon.
Due to his legal authority, the Trustee can complete legal transactions without the use of courts. The terms for this action are the following: 1) the Trustee is the third-party authority, 2) the Trustor is the borrower and 3) the Beneficiary is the Lender. When the Trustor borrows against his property, he creates a lien on said property. If the trustor fails to complete his duties for making payments on a property in a trust, then the Trustee can foreclose upon said property.
The Trustee will issue a Notice of Default (NOD) to the delinquent Trustor. Every step of this process is carefully recorded. The Trustor has 90 days to pay all the penalties and fulfill his financial responsibilities. If the Trustor does not satisfy these requirements, the property will be sold.
Deed Upon Sale
More people are creating more complex estate planning legal protections, like Trusts. As parents age, they may have valuable assets that could be lost due to their making improper decisions. By establishing a responsible Trustee, family members can ensure that all legal procedures are followed and the valuable assets of an estate are well-protected.
The Trustee’s Deed Upon Sale must be publicized for three weeks. The highest bidder at the courthouse auction receives the property. The Trustee’s Deed Upon Sale is a faster process than the traditional foreclosure process. Many courts are being bogged down with a large docket of foreclosed homes.
The Trustee’s Deed Upon Sale enables buyers of the property to take advantage of any prime real estate market conditions. It is another valuable option that ensures that the legal rights of the Trustor and Lender are fully respected.