Legal Question in Real Estate Law in California

Re: Foreclosure

The usual parties to a foreclosure under a power of sale in a deed of trust, i.e., a foreclosure by trustee's sale, are the borrower, the trustee, and the foreclosing note holder, or beneficiary. The borrower's active participation is usually minimal or nil, and the role of the trustee is mainly ministerial - he, she or it plays little to no decision-making role, instead just following the law, rules and instructions given by the foreclosing note holder. Therefore, the beneficary plays the leading, decision-making role in deciding whether, when and how to foreclose, selecting the trustee, etc.

The terms "servicing company" and "entity that has the loan" seem to suggest that the former is a mere data-processor and the latter is the beneficiary, and that may indeed be the case.

However, there are two other possibilities you may need to consider: (1) maybe the servicing company is also the trustee, and is performing the functions of a trustee (sending out notices, etc.) at the behest of the beneficiary. (2) Maybe the servicing company has become the beneficiary through purchase of the note or an assignment of the original beneficiary's rights. Or both, although it is unusual for the trustee and the beneficiary to be one and the same.