The mechanism of foreclosure is put in place at the moment of financing. It is ready to be activated as soon as there is payment default. In the event of default, the beneficiary is entitled to exercise, through the deed of trust, the payment of his principal plus interest. In other words, the beneficiary (lender) will ask the trustee to foreclose the grantor (homeowner) in order to use the collateral (property) for making the loan perform (get paid). When this happens, the following events, timeframes and effects take place. Continue reading →
