- Who sends it
- The lender or its lawyer, recorded in the county land records and sometimes mailed to you
- What it starts
- No deadline by itself. It often means the foreclosure paperwork is being prepared
- Do this first
- Write down the new trustee or holder's name, then call your servicer and a housing counselor
What these documents are
Many home loans use a deed of trust. It names a trustee, a neutral person or company that can sell the home if you default, without a court case. A substitution of trustee (also called an appointment of substitute trustee or appointment of successor trustee) replaces that trustee with a new one. The new trustee is often a law firm that handles foreclosures.
An assignment of mortgage or assignment of deed of trust is different. It is a recorded paper showing that the mortgage was moved from one holder to another. In several states, the party foreclosing must have these papers on record before it can sell.
You may get a copy in the mail, or you may only see it if you or a lawyer look up your home in the county land records.
What it does and does not mean
- It does not mean your home has been sold, and it is not an eviction.
- It does not change the terms of your loan. You still owe the same payments.
- It does not by itself change where you send your payments. If the company you pay is changing, you should get a separate notice; see servicing transfer notice.
- It often does mean a sale is being prepared. Lenders usually name a substitute trustee so that trustee can send the notice of default or notice of sale.
- Federal rules still generally bar the first foreclosure notice or filing until you are more than 120 days behind. If your servicer receives a complete loss mitigation application more than 37 days before a sale, it cannot hold the sale while it reviews you, while any appeal runs, and while you decide on an offer.
Where these papers show up, by state
- Virginia: the lender can replace the trustee for any reason, but the appointment must be recorded where the deed of trust is recorded. The notice of sale must give its recording number or include a copy.
- West Virginia: where the deed of trust has no method of its own, the lender can name a substitute when the original trustee cannot or will not act. It takes effect when a copy is mailed to you and the notice is recorded.
- Mississippi: the lender can appoint a substitute trustee, often a law firm, with or without your permission. That trustee's name is on the sale notice, and that is who gives reinstatement figures.
- Texas: the notice of sale must list the trustee or substitute trustee's name and a street address. Texas law says the trustee is not your fiduciary and is not a debt collector.
- Tennessee: the substitute trustee runs the sale for the lender. Talk to both the trustee and your servicer. In one case, homeowners dealt only with the servicer, and their late payment did not stop the sale.
- Washington: a successor trustee gets its powers only once the appointment is recorded in each county where the deed of trust is recorded. The trustee owes you a duty of good faith.
- Utah: the trustee, or a substitute, must send its name, mailing address, contact hours and phone number with the notice of default and notice of sale.
- Montana: a trustee may sell only if the deed of trust, the assignments and the trustee appointments are recorded.
- Georgia: the security deed, or the assignment that gives the foreclosing lender its rights, must be on file with the clerk in your county before the sale.
- Michigan: if the party foreclosing is not the original lender, a recorded chain of mortgage assignments must exist before the sale.
- Maine: the foreclosure complaint must produce the note, the mortgage and all assignments. In the District of Columbia, the lender must bring every assignment to mediation.
- Nevada: the servicer's pre-foreclosure letter must tell you that you can ask for copies of your note, your deed of trust and any assignment showing its right to foreclose.
What to do this week
- Write down the date of the paper, the recording date if it has one, and the name and contact information of the new trustee or new holder.
- Call your servicer at the number on your monthly statement. Ask whether a foreclosure referral has been made, whether a sale date is set, and how to apply for loss mitigation.
- Send a complete loss mitigation application as soon as you can, in a way you can prove. The earlier it arrives, the more protection you have.
- Ask the trustee named in the paper, in writing, whether a sale is scheduled and for a reinstatement figure. See reinstatement.
- Call a free HUD-approved housing counselor at (800) 569-4287, and legal aid if the names on the papers do not match who you think holds your loan. See lawyers by city.
- Read your state's how foreclosure works page so you know which notice comes next.
Scams tied to these papers
Recorded papers are public, and scammers watch them. Watch for:
- Anyone who asks for a fee before you have signed an agreement with your servicer. A company that is not your lawyer cannot charge for mortgage relief until then.
- Anyone who tells you to stop talking to your servicer, your housing counselor or your lawyer.
- Anyone who wants payment by wire, cashier's check or a payment app, or who asks you to sign over your deed.
- Anyone who says they are with the government or your lender without proof. Call the number on your own statement or letter to check.
- A letter saying a "new trustee" or "new lender" now wants your payments sent somewhere else. Check with your servicer at the number on an old statement before you change where you pay.
See foreclosure rescue scams. Report scams at ReportFraud.ftc.gov or to the CFPB.
How much time do you have? It depends on your state.
See the foreclosure timeline, deadlines and free local help for the state where the home is.
Common questions
Does a substitution of trustee mean my sale date is set?
Not by itself. It means a new trustee can now run the process. A sale date comes in a separate notice of sale. But the two often arrive close together, so act as if a sale could be scheduled soon.
Can the lender change the trustee without asking me?
In many states, yes. Mississippi and Virginia, for example, let the lender appoint a substitute without your permission, as long as it follows the state's recording rules. If you think a required step was skipped, talk to a lawyer quickly.
I never heard of the company in the assignment. Is my foreclosure invalid?
Not necessarily. Loans are often moved between holders. But some states require the assignments to be on record before a sale. If the names do not add up, ask a lawyer or legal aid to check the land records.
Keep reading
- Late notice and early intervention letterThis letter is a warning, not a foreclosure. Federal rules make your servicer reach out early and tell you about help. In most cases a foreclosure cannot start until you are more than 120 days behind, so this is the best time to act.
- Breach letter (demand or notice of intent to accelerate)A breach letter says you are in default and gives you a date to catch up. If you do not, the lender can call the whole loan due and move toward foreclosure. Many standard mortgages and deeds of trust require at least 30 days to cure.
- Notice of defaultIn many states that foreclose without a court, a recorded notice of default is the official start of the foreclosure. It is not a sale and not an eviction. It starts a waiting period before a sale can be set, and you can usually still catch up or apply for help.
- Notice of intent to forecloseMany states make the lender send a warning letter before it can start a foreclosure. These letters often give you a set number of days, a cure amount and a list of free counselors. The deadline in the letter matters, so act on it now.
- Lis pendens (notice of pendency)A lis pendens is a public notice, filed in the land records, that a lawsuit or foreclosure affecting your home is pending. It does not mean the home is sold or that you must move. It usually means the court papers are coming or have already been served.
- Foreclosure summons and complaintA summons and complaint means the lender has sued to foreclose. You have a short, firm deadline to respond in writing, often 20 to 30 days from the day you were served. Missing it can let the lender win without your side being heard.