When you take out a loan or mortgage on your property, the lender, as the beneficiary of that loan, will require you to give the legal title of the property to a neutral person who will make sure that all payments are made. This neutral person is considered the trustee.
Or, in simple terms:
- You = Borrower/Grantor/Trustor
- Bank or Lender = Beneficiary
- Neutral Person = Trustee
If you make all your payments, the lender will ask the trustee to reconvey (give back) the property to you. The trustee will then issue a reconveyance deed, which gives the legal title of the property to you.
However, if you do not make your payments, the lender will ask the trustee to foreclose on the property and sell it to get some or all of their money back.
The original trustee we’ve been discussing is generally not the same person who is an expert or is willing to handle the foreclosure process. 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.
This Appointment of Substitute Trustees is the first sign – and a good signal – that the lender is about to file a foreclosure against you. When this happens, it is important to act fast. If you do so, you may be able to stop the foreclosure from happening and save yourself money, time, and frustration.
Are You Facing a Foreclosure? Call The Law Offices of Ruben and Ruben
Contact the real estate lawyers at The Law Offices of Ruben and Ruben if you require legal guidance or representation in stopping a foreclosure. Our firm has been providing compassionate guidance and dedicated legal services to the residents of Maryland for generations. We can evaluate your case, explore the breadth of your legal options, and help you pursue a favorable case outcome that reflects your legal and financial objectives.
Contact The Law Offices of Ruben and Ruben at (240) 641-8572 to schedule a free consultation.