Substitution Of Trustee And Full Reconveyance: Fill & Download for Free

Deeds of trust are almost always transferred for enforcement. By the time the debtor defaults, the creditor or their successors have changed lawyers or the lawyers named as trustees are unavailable or not preferred by the creditor. It is a simple matter to substitute trustees. I’m not sure that’s what you are really asking. Generally, when clients ask about transferring a debt instrument, they are asking about the note. That, also, can usually be transferred unless assignment is specifically forbidden in the note. The deed of trust is merely the document of the security, and, until a default, it is worthless.

Let’s be sure what you mean by foreclosure . Texas has non-judicial foreclosure. This means in many cases there are two notices sent to a borrower ,Notice of DefaultNotice of Substitute TrusteeForeclosure sales are held the first Tuesday of each month, normally on the court house steps in the county where the property is located. During this time the property would be considered in pre-foreclosure.What is important about this is that prior to a property being announced by the substitute trustee on the court house steps, it would be purchased from the owner. Either as a For Sale By Owner type transaction or through a listing broker.Once it is announced on the courthouse steps , the substitute trustee will auction it live to the highest bidder. Sometimes the lender will start the bidding at what they are owed (including fees). If no one bids higher then the lender takes title and owns the property.This brings us to foreclosed property. Foreclosed property is also known as REO properties(Real Estate Owned). For these properties it is up to the lender (new owner) to decide what to do with them. With property values climbing it has not been uncommon for a lender to hold the property, make repairs and upgrades and then list the property for sale.Many times when I have been asked this type question , it is about foreclosed homes. But other times it is not. Since other states have judicial foreclosure(court action required-not just delivery of a couple of notices ), it is important to understand the status of the property.Please understand I am not an attorney and this is not legal advice. It does not apply to every situation and property. It is only a general view of buying pre-foreclosure or foreclosed property in Texas.

Other answers give you more information, but basically it depends on the bank’s contract with its attorney. The attorney charges for the posting notice, the demand letter, the acceleration letter, the appointment of the substitute trustee, and the preparation of the warranty deed for transfer of the property to the new owner after the foreclosure. So, it depends on how much the attorney charges for the preparation for each document and that is not including the cost of recording or the cost of attending the fore closure sale.