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 Foreclosure Checklist

Initial Foreclosure Filing and Recording of NED Receipt Foreclosure 1.Proof documents for accuracy and completeness Accept file 1. Assign Sale Number 2. notification to Attorney Record NED within 10 business days

Foreclosure Checklist Set Dates and Prepare Documents Set Sale Date 1.Determine sale status: Deferment, Expedited, Ag, Non-Ag 2.Set sale date: Non-Ag/Deferred sale: days (Set deferred sale as late as possible) Ag sale: days Expedited sale: days

Foreclosure Checklist Set Dates and Prepare Documents Prepare Documents 1.Create Combined Notice for Mailing Mail to names on Mailing List Include copies of Statutes Include any other inserts (brochures, intents to cure, etc.) 2.Create Combined Notice for Publication Send to newspaper & request proof

Foreclosure Checklist Notices of Intents to Cure Default Receipt of Intent to Cure Default 1. 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

Foreclosure Checklist Notices of Intents to Cure Default 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

Foreclosure Checklist Notices of Intents to Cure Default 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

Foreclosure Checklist 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

Foreclosure Checklist Second Mailing of Combined Notice 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

Foreclosure Checklist Second Mailing of Combined Notice 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

Foreclosure Checklist Publication of the Combined Notice Publication 1.45 – 60 days before first scheduled sale date 2.Review the publication for accuracy 3.Publish in newspaper in the county (or counties) where property is located 4.Unless otherwise specified by attorney for Holder, Officer shall select the newspaper

Foreclosure Checklist Publication of the Combined Notice Publication 1.45 – 60 days before first scheduled sale date 2.Review the publication for accuracy 3.Publish in newspaper in the county (or counties) where property is located 4.Unless otherwise specified by attorney for Holder, Officer shall select the newspaper

Foreclosure Checklist Pre Sale Documents Order Authorizing Sale 1.Due by noon 2 business days before sale 2.Hearing must be at least 16 days before sale 3.If not filed or filed late, continue the sale for one week

Foreclosure Checklist Pre Sale Documents Itemized Bid (statutory form) 1.Due by noon 2 business days before sale 2.Must be signed by attorney or Holder 3.Upon receipt, make available to public 4.May be amended in writing by noon day before sale or orally at the sale 5.If not filed or filed late, continue the sale for one week

Foreclosure Checklist Pre Sale Documents Itemized Bid (statutory form) 1.Due by noon 2 business days before sale 2.Must be signed by attorney or Holder 3.Upon receipt, make available to public 4.May be amended in writing by noon day before sale or orally at the sale 5.If not filed or filed late, continue the sale for one week

Foreclosure Checklist Conduct the Sale Register bidders and provide sale rules Read, post, or provide sale and bid info Conduct the auction 1.Successful bid is due at time of sale unless there is a written policy stating otherwise

Foreclosure Checklist Conduct the Sale Deficiency Bids 1.Mark on the note or create an allonge 2.Send note and/or allonge to attorney Certificate of Purchase 1.Record within 5 business days 2.Retain the original recorded COP

Foreclosure Checklist Conduct the Sale Excess Bid Payments 1.First use to lower any deficiency 2.Hold in escrow until end of redemption periods 3.Pay by recording priority to “qualified” junior lienors to the extent of their lien 4.Finally pay owner of property as of NED

Foreclosure Checklist Redemption by Junior Lienors Notice of Intent to Redeem 1.Due within 8 business days after sale Redemption Statement 1.Send request within one business day of receipt of intent 2.Due within 13 business days after sale 3.If not timely filed, PT calculates amounts

Foreclosure Checklist Redemption by Junior Lienors Redemption dates 1.Set on 9 th business day after sale 2.First redemption starts on 15 th business day after sale 3.Each redemption has 5 business days 4.Redemptions are due by noon of last day of each redemption period

Foreclosure Checklist Redemption by Junior Lienors Redemption payments 1.Senior lienor pays amount bid at sale 2.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

Foreclosure Checklist Redemption by Junior Lienors Certificate of Redemption 1.Record no sooner than 15 business days following sale 2.Record no later than 5 business days following redemption payment

Foreclosure Checklist Confirmation Deed Confirmation Deed (Statutory form) 1.Issue upon written request and payment of fees and costs 2.Do not issue before the end of all redemption periods 3.If no Intents to Redeem are filed, Officer may issue on 9 th business day

Foreclosure Checklist Questions?