In case of default on a loan secured by a trust deed, who sends the declaration of default?

When a borrower defaults on a loan secured by a trust deed, it is the beneficiary who sends the declaration of default. The beneficiary is typically the party that holds the note or the lender; they have a vested interest in the loan being repaid. In California, when a borrower fails to meet the obligations of the loan, the beneficiary initiates the process to declare that the borrower is in default. This step is crucial as it formally starts the default process, which can lead to foreclosure if the borrower does not rectify the situation.

The declaration outlines the specifics of the default and is a key document in the legal process of recovering the owed amount. Understanding this role is essential for anyone involved in real estate transactions, as it highlights the procedural aspects of dealing with defaults in loan agreements secured by trust deeds.