Trustee Sales

Written by Linda Alexander
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Trustee sales occur in judicial foreclosure states. They are court-approved sales of property to cover the unpaid balances of debts which are in default. In trustee states, the trustee initiates the foreclosure proceedings-the lender gives the trustee proof of delinquency and asks them to initiate foreclosure proceedings.

The process of trustee sales is a much more efficient way to foreclose than by going through the courts. If the homeowner/borrower does not respond during the reinstatement period, a Notice of Trustee Sale is advertised and the sale will take place, usually at public auction. As an investor, if you wish to buy foreclosures at Trustee sales, you will usually need to bring cash in the form of a cashier's check or money orders.

Where to Find Trustee Sales

By law, the Notice of Trustee's Sale is filed at the county recorder's office where the property is located, on the property itself, and in an approved newspaper in the city where the property is located. If you search these areas often, you will find sales of houses you might be interested in buying.

One caveat: You must inspect the property before the sale. Doing so after the sale will do no good--if you later find out the property is trashed, it is too late. You must know beforehand.

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