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Notice of Default and Notice of Trustee’s Sale Must Name the Current

Beneficiary, Servicer and Trustee

• The Notice of Default must state the current beneficiary, current servicer, and current
trustee of the deed of trust.

Notice of Default Sent to Potential Heirs if the Borrower is Known to be
Deceased

• If either the servicer or trustee know that the borrower is deceased, then the following must
occur:
o A copy of the Notice of Default, addressed to heirs or devisees of the borrower,
must be sent to the property;
o The Notice of Default must be sent to any known spouse, child, or parent of the
deceased, and to any owner of record;
o If addresses of the spouse, child or parent are unknown, the trustee must
search county records where the property is located to ascertain the addresses,
including obituaries, wills, death certificates, or probate cases;
o If the trustee searches and cannot find the addresses, it must record a
declaration stating so with the Notice of Trustee’s Sale.

When a Deceased Borrower’s Potential Heir Writes to the Trustee

• When a person not on the loan writes to the trustee, names the borrower and property
address, and claims the deceased borrower’s property rights (i.e., claims to be the
borrower’s Successor-in-Interest), then the trustee must not record a Notice of Trustee’s Sale
until the trustee does the following:
o Acknowledges the notice in writing;
o Requests documentation of the death of the borrower, like a death certificate,
and allows at least 30 days to provide such documentation.
o Then, if documentation of death is provided, or if the death is independently
confirmed, then the trustee must request documentation of the person’s
ownership interest and allow 60 days to provide that documentation.
o If proof of ownership interest is provided, then the trustee must deem that
person a Successor-in-Interest and must provide the following within 20 days:
▪ Loan details, such as balance and interest rate, monthly payment;
▪ Basis for the default;
▪ Amount necessary to bring the loan current (reinstatement amount);
▪ Amount necessary to pay the loan off (payoff amount); and
▪ Payment address.

January 2020 | Page 39