Does title company process foreclosure procedure?

by oliver on September 30, 2010

Question:

Does title company process foreclosure procedure?

I know that title company offers loan servicing.. but if the borrower is not paying do they process foreclosure or do i have to find a loan servicing company ?

Answer:

The title company is not the one who will process the foreclosure, instead, the Trustee will be the one to do it. Usually, the title company hires or recommends a Trustee who will perform a foreclosure on a trust deed. Usually, it is you who will assign a new Trustee but the foreclosure company can already handle that.

If the borrower is no longer paying his mortgage for at least 3 consecutive months, the mortgage company may file for a foreclosure against the borrower. Once a foreclosure is filed, the borrower will receive a notice of default, informing him of the total amount of debt that he owes and telling him that his property will soon face foreclosure. The borrower will be given a certain period of time in order to make his payments current or make an agreement with his lender to avoid the foreclosure process from taking place. If the borrower was not able to make his payments current, the property will be sold thru an auction at a scheduled time and date. The person who gives the highest bid will be the one to have the right of ownership over the house. If the borrower is still in the property after the transfer of rights has been accomplished, the new owner may file for an eviction process. A notice of eviction will finally be given to the previous owner, ordering him to leave the property as soon as possible.

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