Processing a Standard Foreclosure Bob Sagel Morgan County Public Trustee Foreclosure Checklist

Processing a Standard

Foreclosure

Bob Sagel

Morgan County Public Trustee

Foreclosure Checklist

1. Initial Foreclosure Filing and Recording of NED

2. Set Dates and Prepare Documents

3. Notices of Intent to Cure Default

4. Second Mailing of Combined Notice

5. Publication of the Combined Notice

6. Pre Sale Documents

7. Conduct the Sale

8. Redemption

9. Confirmation Deed



• Initial Foreclosure Filing and Recording of NED

Receipt Foreclosure1.Proof documents for accuracy and completeness

Accept file

1. Assign Sale Number

2. Email notification to Attorney

Record NED within 10 business days


• Set Dates and Prepare Documents

Set Sale Date1.Determine sale status:

Deferment, Expedited, Ag, Non-Ag

2.Set sale date: Non-Ag/Deferred sale: 110-125 days (Set deferred sale as late as possible) Ag sale: 215-230 days Expedited sale: 45-65 days


• Set Dates and Prepare Documents

Prepare Documents1.Create Combined Notice for Mailing

Mail to names on Mailing ListInclude copies of StatutesInclude any other inserts

(brochures, intents to cure, etc.)

2.Create Combined Notice for PublicationSend to newspaper & request proof


• Notices of Intents to Cure Default

Receipt of Intent to Cure Default1. Must be received at least 15 days before sale

2. Written requests for updated figures must also be received at least 15 days before sale

Request Cure Statement from attorney/Holder

1.Promptly but no less than 12 days before sale



Cure Statement

1. Due within 10 business days of receipt or by end of business 8 calendar days before sale

2. If not timely filed, sale is continued weekly(run concurrently with deferment continuances)

3. Must state effective date and be good for at least 10 days but no more than 30 days



Cure payment

1. Due by effective date on Cure Statement

2. Final day to pay is by noon, day before actual sale

3. All cure deadlines apply to foreclosures in deferment


Second Mailing of Combined Notice

Second Mailing due 45–60 days before sale

1. Mail to names on Amended Mailing List

2. If no Amended Mailing List, use initial list

3. Do not mail prior to deferment deadline

4. Do not mail if in deferment

5. There is No second mailing for expedited sales



Amended Mailing List received after second mailing

1. Continue sale no less than 65 days after receipt of Amended Mailing List

2. Send Combined Notice to names on Amended Mailing List no less that 45 days prior to actual sale



Amended Mailing List received after second mailing

1. Continue sale no less than 65 days after receipt of Amended Mailing List

2. Send Combined Notice to names on Amended Mailing List no less that 45 days prior to actual sale


Publication of the Combined Notice

Publication1. 45 – 60 days before first scheduled sale date2. Review the publication for accuracy3. Publish in newspaper in the county (or

counties) where property is located4. Unless otherwise specified by attorney for

Holder, Officer shall select the newspaper


Publication of the Combined Notice

Publication1. 45 – 60 days before first scheduled sale date2. Review the publication for accuracy3. Publish in newspaper in the county (or

counties) where property is located4. Unless otherwise specified by attorney for

Holder, Officer shall select the newspaper


Pre Sale Documents

Order Authorizing Sale1. Due by noon 2 business days before sale2. Hearing must be at least 16 days before sale3. If not filed or filed late, continue the sale for

one week


Pre Sale Documents

Itemized Bid (statutory form)1. Due by noon 2 business days before sale2. Must be signed by attorney or Holder3. Upon receipt, make available to public4. May be amended in writing by noon day before

sale or orally at the sale5. If not filed or filed late, continue the sale for one

week


Pre Sale Documents

Itemized Bid (statutory form)1. Due by noon 2 business days before sale2. Must be signed by attorney or Holder3. Upon receipt, make available to public4. May be amended in writing by noon day before

sale or orally at the sale5. If not filed or filed late, continue the sale for one

week


Conduct the Sale

Register bidders and provide sale rules

Read, post, or provide sale and bid info

Conduct the auction1. Successful bid is due at time of sale unless

there is a written policy stating otherwise


Conduct the Sale

Deficiency Bids1. Mark on the note or create an allonge2. Send note and/or allonge to attorney

Certificate of Purchase1. Record within 5 business days2. Retain the original recorded COP


Conduct the Sale

Excess Bid Payments1. First use to lower any deficiency2. Hold in escrow until end of redemption

periods3. Pay by recording priority to “qualified” junior

lienors to the extent of their lien4. Finally pay owner of property as of NED


Redemption by Junior Lienors

Notice of Intent to Redeem1. Due within 8 business days after sale

Redemption Statement1. Send request within one business day of

receipt of intent2. Due within 13 business days after sale3. If not timely filed, PT calculates amounts



Redemption dates 1. Set on 9th business day after sale2. First redemption starts on 15th business day

after sale3. Each redemption has 5 business days4. Redemptions are due by noon of last day of

each redemption period



Redemption payments 1. Senior lienor pays amount bid at sale2. Subsequent lienor pays amount paid by prior

redeemer plus interest plus amount due as listed on statement plus per diem

3. Disburse funds at end of each period



Certificate of Redemption 1. Record no sooner than 15 business days

following sale2. Record no later than 5 business days

following redemption payment


Confirmation Deed

Confirmation Deed (Statutory form)1. Issue upon written request and payment of

fees and costs2. Do not issue before the end of all

redemption periods3. If no Intents to Redeem are filed, Officer

may issue on 9th business day


Questions?