How Does a Lender Start a Trustee's Sale?
(you can mail, fax (602-249-1969) or e-mail (DDrain@DianeDrain.com)

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)

____________________________________________________________________________________

1. You must contact any servicer in writing and inform them to release any information to our office.

2. Provide this office with the following documents:
    

   • 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.

   • A retainer check of $250 for each trustee's sale demand.
      

3. In addition we need the following information:
    

   • Address for the property to be foreclosed on (include City and zip code):
     
      ___________________________________________________________________________________

   • County where the property is located _____________________________________

   • Is the property 5 raw land  5 residential property 5 commercial property

   • Is there a mobile home on the property? 5 yes  5 no  5 I do not know

   • Are the real property taxes current? 5 yes  5 no 5 I do not know

   • Is there insurance on this property?  5 yes  5 no 5 I do not know

   • Are you listed as a loss payee on the insurance? 5 yes  5 no 5 I do not know

   • When you entered into this loan did you purchase a "lender's policy" 5 yes  5 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.
     
     Name:_________________________________, Address_________________________________
     
     Phone: ___________________ Fax: __________________ Account number: _______________
     
     ____ Check here if you are service your own loan.
      

   • The name, address and account number of any other lien-holders:
     
     __________________________________________________________________________

             _________________________________________________________________________
    

4. 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 Principle 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) $________

5. 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. 

6. 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.

7. 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. 

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 THAT YOU DO NOT OWN THE PROPERTY - YOU OWN THE NOTE AND ARE THE BENEFICIARY (LENDER) OF 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 $1,600 fees and costs for principal sum under $100,000. Call if you have any questions.