Introduction

The public is made aware of the time, date, and location of a public real estate foreclosure auction by a recorded document called a Notice of Trustee Sale. The Notice of Trustee Sale (or Notice of Trustee’s Sale) is a legal notice advising a borrower (or borrowers) of the foreclosure sale that is sent to them via first-class and certified mail. Names of the grantor, current beneficiary of the deed of trust, trustee, mortgage servicer, and parcel number of the property will all be listed on the Notice of Trustee Sale. The “Trustee’s Sale,” as it is commonly known, is the last stage of the non-judicial foreclosure process. (For places where foreclosures are handled judicially, or by the court system, you won’t likely get a Notice of Trustee Sale.) The Trustee represents both the beneficiary of your loan and your lender in their duties. The Trustee Sale is duly carried out by the Trustee. The Trustee assigned to your deed at the time of mortgage origination will typically be changed by a Substitute Trustee before the Notice of Trustee’s Sale is published. The local legal firm (or business) that specializes in holding foreclosure sales typically serves as the Substitute Trustee. Most states mandate that your lender and Trustee send pre-foreclosure warnings informing you that you are in mortgage default, have missed payments, and need to take action if you want to prevent the Trustee Sale prior to the Notice of Trustee’s Sale. Therefore, if you want to try to avoid foreclosure, you must take this matter seriously if you have received a Notice of Trustee’s Sale. 

The amount of time you have following receipt of your Notice of Trustee’s Sale is determined by state law

When choosing a date for the auction, Lenders and Trustees must follow state regulations. The amount of time that can pass between the recording of the Notice of Trustee Sales and the auction is governed by the laws of your state. For instance, before selling a home at auction in Washington, the trustee must provide the owner 120 days’ notice following the registration of the notice of trustee sale. Therefore, in Washington, homeowners who receive a Notice of Trustee Sale have four months to act before the auction. After receiving the Notice of Trustee Sale, you may still be able to prevent the public auction. There might still be some options open to you, but you must move swiftly.

Utilize the loss mitigation procedure offered by your mortgage lender to halt the trustee sale

 You and your lender might be able to come to a new arrangement to prevent the Trustee Sale and finish off the default: You can keep your house and resume mortgage payments by using the loan modification procedure to assist you obtain a mortgage modification. Your foreclosure will be stopped if a loan modification is accepted and authorized. You might be able to get a mortgage modification with the aid of government programs if you have a Fannie Mae, Freddie Mac, FHA, VA, or USDA loan (to keep the home). Bring your loan current in order to reinstate the past due sums and keep your home. A reinstatement is a one-time, complete payment of all past-due fees and mortgage payments. 

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You resume your regular mortgage payments after you reinstate. After receiving a Notice of Trustee Sale, if you want to reinstate your mortgage, be careful to ask the Trustee for a reinstatement price in writing and payment instructions for how they want you to do it. If your Trustee requests certified funds, follow their instructions precisely. Depending on the regulations of your state, there can be a cutoff date. For instance, in Washington, you can only reinstate if the auction date is more than 11 days away. With a repayment plan, you can resume making your normal mortgage payments while adding an agreed-upon additional money to cover the arrears. After your payback schedule is finished, you resume making your normal mortgage instalments. There are ways to seek and obtain approval for a Give in Lieu or a Short Sale Agreement with your lender, depending on whether you want to short sell your house or deed it back to the bank (because you owe more on the house than it is worth). You can halt the trustee sale and vacate your house prior to the auction date with the aid of these agreements. It is crucial to realize that while loss mitigation measures like those mentioned above might remedy the problem, they are not a surefire fix. The bank may still proceed with the Trustee’s sale if you are turned down for one of the aforementioned choices. Or, if you submit your application too soon before a Trustee’s Sale, the bank might decide it’s not the right time to consider your loss mitigation strategy. Therefore, it is always advised to get legal advice as soon as possible if you are debating one of the aforementioned options and have received a Notice of Trustee’s Sale to ensure that you make the best choice. Ask a housing counsellor whether they can help you stop or delay the foreclosure process if you are unable to afford legal counsel.