If you decide to place a property that you own into a trust, legal control will be retained by a trustee who has the legal authority to make all decisions on your behalf. If you, as a beneficiary, fall behind on the payments that you need to make regarding the property, it can be foreclosed. However, a quicker way to sell the property is by using a Deed Upon Sale. It is faster than foreclosure proceedings and doesn’t bog down the courts.
Trustee Responsibilities
A trustee has the legal authority to make transactions without using the court system. They are allowed to do this based on the following terms:
– A trustee is a third-party authority
– A trustor is a borrower
– A beneficiary acts as a lender
If you act as a trustor and decide to borrow against your own property, you will create a lien on that specific property. In the future, if you, as a trustor, fail to complete your duties of making schedule payments on that piece of property that you have in a trust, the trustee has the ability to enforce foreclosure upon that specific property that you own.
Notice Of Default
In this type of scenario, a trustee who is in control of the property will take legal action by issuing a Notice of Default to you as a delinquent trustor. When this type of action is taken, the process is recorded so that no discrepancies can be found. As a trustor, you are given a time period of 90 days to make payments that cover all of the penalties that have incurred as well as any other financial responsibilities that you are required to make. If you do not satisfy all of these requirements, your property will be foreclosed upon and sold.
Highest Bidder Wins Deed Upon Sale
When it is time for the sale to occur, the Deed Upon Sale is required to be publicized for a time period of three weeks. Individuals who are interested in the property will make bids during that time, and whoever makes the highest bid becomes the new owner of the property.
It Is Quicker Than Traditional Foreclosures
A Trustee’s Deed On Sale is used since it is much faster than trying to use a traditional foreclosure process. Unfortunately, many courts are receiving a long list of homes that need to be foreclosed, and it is bogging down the length of time that it takes to get these type of proceedings done.
A Trustee’s Deed Upon Sale gives interested purchasers the ability to buy prime real estate in certain market conditions.
Jim Treebold is a North Carolina based writer. He lives by the mantra of “Learn 1 new thing each day”! Jim loves to write, read, pedal around on his electric bike and dream of big things. Drop him a line if you like his writing, he loves hearing from his readers!