Stage 1 of 4 · The Paperwork Behind the Loan
Trustee
The neutral third party named in a deed of trust who holds title and conducts the sale if the borrower defaults.
- In plain English
- The trustee is not the lender and not the borrower. It is usually a title company or a specialist firm that owes duties to both sides and simply runs the procedure the deed of trust lays out.
- Example
- A lender substitutes a new trustee by recording a document, and that firm then records the notice of default and later cries the auction.
- Why it matters
- Knowing who the trustee is tells you who to call for the payoff figure, the sale date and the bidding rules.
- Remember it as
- The referee holds the deed.
Where it lands in the timeline
Stage 1: The Paperwork Behind the Loan
Every foreclosure is already written into the papers signed at closing, so this phase reads the fine print before the fine print reads you.