Trustee Sale
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
Trustee sales are a key component of non-judicial foreclosures, which are common in states like California. In this process, the borrower has signed a deed of trust, which appoints a trustee to hold the title to the property until the loan is repaid. When the borrower defaults, the lender instructs the trustee to initiate foreclosure proceedings. The trustee then conducts a public auction, often referred to as a trustee sale, where the property is sold to the highest bidder. This process is generally faster and less expensive than judicial foreclosure.
Maria defaults on her mortgage, which is secured by a deed of trust. The lender instructs the trustee to sell the property. The trustee advertises the sale and holds a public auction. A buyer purchases the property at the trustee sale and receives a trustee's deed.
Focus on the fact that trustee sales are associated with deeds of trust and non-judicial foreclosures. Understand that the trustee acts on behalf of the lender to sell the property quickly and efficiently. The buyer at a trustee sale receives a deed, granting them ownership.
Related Terms
Practice Questions
At a trustee’s foreclosure sale, the buyer receives a deed.
Foreclosure in Montana is typically:
In Texas, the most common security instrument for real estate loans is:
Washington's foreclosure process requires a minimum of:
Foreclosure in Nevada is typically:
Nevada deficiency judgments after non-judicial foreclosure:
Who generally benefits the most from an assignment of rent clause contained in a trust deed?
In Texas, non-judicial foreclosure through a trustee's sale must include a minimum notice period of:
Arizona foreclosure notice of sale must be recorded at least:
In California, a deed of trust involves three parties. Who holds legal title until the loan is paid off?
Related Concepts
Foreclosure is the legal process by which a lender takes possession of a property when a borrower fails to make mortgage payments. It allows the lender to sell the property to recover the outstanding debt.
In the context of foreclosure, a deed transfers ownership of the foreclosed property to the new owner, typically the buyer at a foreclosure sale.