What is a Loan Trustee Service and How Does It Help Lenders?

Lenders in Arizona hired a loan trustee service company to foreclose their commercial property.In a loan with real estate as collateral, the trustee is the neutral third party that holds a title until it is ready to either be transferred to the borrower, transferred to another trustee, or handed over in the event of a foreclosure.

What is a Loan Trustee Service or Mortgage Trustee Service?

If a borrower takes on a loan for real estate, it is either titled under a deed of trust or a mortgage. Although the word “mortgage” is used interchangeably to describe all loans with real estate as collateral, the two terms are different.

Mortgages happen between two parties: the lender and the borrower. In a mortgage, borrowers hold onto their title, and the lender puts a lien on the property. If the lender wishes to foreclose the property and there is no power of sale clause in the loan instrument, they will have to file a court order to foreclose.

A deed of trust is drawn between three parties: the lender, the borrower, and the trustee. In a deed of trust, the trustee holds the title until the borrower either pays the loan — in which case the trustee transfers the title to the borrower — or until the borrower defaults, at which time the trustee will enact the foreclosure process non-judicially.

A loan trustee service or mortgage trustee is a neutral third party that enacts actions for the lender. Lenders typically choose their own trustee, and trustees can be a title company, professional escrow comment, or even an attorney.

Total Lender Solutions Offers Loan Trustee Services

Lenders need a loan trustee that intimately understands the foreclosure and reconveyance process and can ensure that lenders act in accordance with regulation. Even if a lender already has a trustee for their property, Total Lenders Solutions offers easy son solutions that work hand-in-hand with your business, freeing your team to focus on their customers.

When lenders contact Total Lender Solutions, they’re in touch with the premiere foreclosure, reconveyance, and UCC sales team for California, Texas, Arizona, Nevada, Oregon, and Missouri.

Keep Your Team Educated About Foreclosure Law

At Total Lender Solutions, a foreclosure processing services company, we advocate for lenders looking to maximize recoveries on defaulted loans. For over 15 years, our team of highly experienced real estate professionals and legal experts has transformed complicated processes into clear resolutions for institutional and private lenders. We work as a vigorous extension of your team to provide comprehensive solutions and seamless communication, from pre-foreclosure and notice of default to the final sale phase. Our dedication and persistence when it comes to the foreclosure process ensures that our clients feel confident in reaching a successful outcome. Contact us today.