The questions below recur on power of sale foreclosure of seller-carry notes. The answers run against the state-specific non-judicial foreclosure framework, the §1024 RESPA servicing framework on residential consumer-purpose notes, and the state anti-deficiency rules.Who runs the trustee on a non-judicial foreclosure?The trustee is [...]
The two foreclosure frameworks on a seller-carry note run on different procedural mechanics, different timing profiles, different cost structures, and different post-sale risk profiles. The framework that applies to a specific note runs against the security instrument the holder recorded at closing and the [...]
This case study describes a composite scenario built from operational patterns that recur on self-managed power of sale foreclosures. Names, locations, and exact figures are illustrative rather than drawn from a single specific transaction. The facts below capture the failure mode and the cure.The [...]
The seven mistakes below recur on power of sale foreclosure of a seller-carry note where the holder runs the framework without a third-party servicer. Each one creates a procedural defect that voids the trustee's sale or extends the holder's exposure on the post-sale title [...]
Power of sale foreclosure on a seller-carry note runs through the deed-of-trust trustee under the state-specific non-judicial foreclosure framework. The trustee — a third party designated in the deed of trust — exercises the power granted by the borrower at origination to sell the [...]
A holder who has collected direct payments on a seller-carry note transitions to professional servicing through a documented file-handoff sequence. The transition runs the §1024.33 servicing-transfer notice to the borrower, the file reconstruction to origination, and the operational cutover to the servicer's system of [...]
The questions below recur on seller-carry note direct-payment practice. The answers run against the IRS §6050H reporting framework, the §1024 RESPA servicing framework, the §1026.41 periodic statement framework, and the state trust-accounting and unclaimed-property rules.Is direct payment collection illegal on a seller-carry note?No, but [...]
The two payment-collection paths on a seller-carry note run on different regulatory profiles, different operational disciplines, and different audit trails. This comparison walks direct payment collection against third-party professional servicing on the dimensions that matter to the note holder and the borrower.Payment receipt and [...]
This case study describes a composite scenario built from operational patterns that recur on self-serviced seller-carry files. Names, locations, and exact figures are illustrative rather than drawn from a single specific transaction. The facts below capture the failure mode and the cure.The transaction at [...]
The six risks below recur on a seller-carry note where the holder collects payments directly from the borrower. Each one creates a specific regulatory or operational exposure that a third-party servicer eliminates as part of the standard servicing scope.1. The §6050H reporting gapA holder [...]
