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The trustee will then issue a reconveyance deed, which gives the legal title of the property to you. ... Instead, the original trustee, or sometimes the loan servicing company, will appoint a new Substitute Trustee to handle the foreclosure. To do this, they must file an Appointment of Substitute Trustees.

A Substitution of Trustee is a form filed when a successor trustee takes the place of a previous trustee. A successor is a person or entity who takes over and continues the role or position of another.

A foreclosure trustee is the party who typically handles a nonjudicial foreclosure. ... Few states have laws addressing the neutrality of foreclosure trustees. So, trustees typically look out for lenders' interests, rather than borrowers' interests, in foreclosures because they have a financial incentive to do so.

In real estate, a trustee sale means the sale of real property through public auction. A trustee sale usually occurs when the homeowner is in default on their mortgage, resulting in a foreclosure. ... In this case, after the auction is over, ownership of the property will be transferred to the highest bidder.

In a nonjudicial foreclosure, the third party who normally handles the foreclosure process is called a "trustee." In theory, a foreclosure trustee is a neutral party, but the lender or loan servicer usually chooses the trustee, who is often affiliated with the lender or the lender's attorney.

A substitute trustee is a person named by the lender under the terms of the security instrument (deed of trust) to exercise the power of sale (Tex. Prop. Code § 51.0001(7)). The power to appoint a substitute trustee must be expressly designated by the lender in the deed of trust, otherwise the appointment is invalid.

Foreclosure properties are auctioned at a Trustee Sale at the court house in the county where the property is located. ... REO is property owned by a lender, usually a bank, after an unsuccessful sale at a foreclosure auction (Trustee Sale).

Legal Definition If a bank offers a property at auction through a Substitute Trustee's sale, and the bidders do not reach the reserve, or minimum amount the bank will accept, the bank will buy-in the property in order to take title / possession of the property.

Like all deeds, these two legal documents are both used to transfer titles from one owner to another. A warranty deed protects property owners from future claims that someone else actually owns a portion (or all) of their property, while trustee deeds protect lenders when borrowers default on their mortgage loans.

Buying a foreclosed home is riskier than buying a home that's owner-occupied. Some of the drawbacks to buying a foreclosed property include: Increased maintenance concerns: Homeowners have no incentive to maintain the home's condition when they know they're going to lose their property to foreclosure.