Trustee's sale
The auction at the end of a non-judicial foreclosure, run by the trustee named in the deed of trust. Same idea as a sheriff's sale, different process.
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Part 1 of 4
Why a seller cares
The trustee's sale is the auction at the end of a non-judicial foreclosure, run by the trustee named in the deed of trust. It is the fast version of the sheriff's sale, and it is the date on the last notice.
Part 2 of 4
A simple example
Ninety days after the notice, the trustee auctions the home on the courthouse steps at 10 a.m. The lender credit-bids the balance and takes it back as REO.
| What happens | What follows |
|---|---|
| The lender's credit bid wins | The home becomes REO |
| A cash bidder wins | A trustee's deed; the former owner is out unless the state allows redemption |
| The sale is postponed | Common; it is announced at the sale and reset to a later date |
The trustee's sale is a deed-of-trust state's auction, with the trustee as auctioneer.
Part 3 of 4
What people get wrong
That the trustee works for the borrower. The trustee is neutral in name and the lender's instrument in practice.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
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