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
Foreclosure Checklist
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Initial Foreclosure Filing and Recording of NED
Receipt Foreclosure
1. Proof documents for accuracy and
completeness
Accept file
1. Assign Sale Number
2. Email notification to Attorney
Record NED within 10 business days
Foreclosure Checklist
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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: 110-125 days
(Set deferred sale as late as possible)
Ag sale: 215-230 days
Expedited sale: 45-65 days
Foreclosure Checklist
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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
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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
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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
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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.
2.
3.
4.
5.
Mail to names on Amended Mailing List
If no Amended Mailing List, use initial list
Do not mail prior to deferment deadline
Do not mail if in deferment
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
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Pre Sale Documents
Itemized Bid (statutory form)
1.
2.
3.
4.
Due by noon 2 business days before sale
Must be signed by attorney or Holder
Upon receipt, make available to public
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.
2.
3.
4.
Due by noon 2 business days before sale
Must be signed by attorney or Holder
Upon receipt, make available to public
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
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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
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Redemption by Junior Lienors
Redemption dates
1. Set on 9th business day after sale
2. First redemption starts on 15th 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
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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
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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 9th business day
Foreclosure Checklist
Questions?