All About Trustee’s Sales
When Real estate is sold at a public auction known as a trustee sale. These sales are held when homeowners fall behind on their mortgage payments and the lenders seize the property, as well as when homeowners default on their property tax payments and the taxing authority seizes the property. To let the public know when real estate is up for sale, such sales are typically advertised in the newspaper.
When someone mortgages a property, part of the deal includes a clause allowing the lender to seize the property if the borrower doesn’t make payments. When a property is foreclosed upon, a trustee is chosen to manage the property’s repossession and auction sale. To recoup the remaining loan sum, the sale has that objective. Similar justifications are given for tax auctions.
Trustee’s Sales are open, minimum-bid auctions. The minimum is frequently not the full amount of the debt, and the Beneficiary may submit more bids up to the full amount of the foreclosing obligation. By reviewing the Notice of Trustee’s Sale, a bidder at the Trustee’s Sale can estimate the approximate total amount of the foreclosing debt. Any and all liens and encumbrances that are senior to the Deed of Trust that is being foreclosed will be transferred to the Bidder upon purchase of the property. The complete duty for determining the auction item’s value and the bid amount rests with the bidder.
The number and value of any and all encumbrances and/or liens that are recorded against the property and that are senior in precedence to the Deed of Trust that is the subject of the Trustee’s Sale are solely the responsibility of the Bidder. Legal counsel, title information, or views regarding the auctioned property’s worth are not provided by RESS Financial Corporation.
At the time of the sale, all bids at a trustee’s sale must be accompanied by Cashier’s Check(s) or cash in the full amount of the winning bid. Prior to the issuance of a Trustee’s Deed, all monies must clear.
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