What is a Trustee Sale and how do they work? When you attend a Trustee Sale properties are sold as is, where ever they are. You pay with cash or equivalent. A large note of CAUTION is necessary here as when you buy it you own it! Do a very in depth investigation of the property prior to bidding. Hiring a licensed home inspector would be a wise investment.
At this point in your investment career you will need a reliable source of foreclosure properties with all the information that is available. In this situation information is "king".
Trustee sales are frequently postponed as the home owner is frantically trying to save the property. Keep track of postponements as many investors will not. This could lead to a sale without much competition.
Properties are assigned a Trustee Sale Number (TS#). This number is generated when a property enters foreclosure and is used by any interested investors. When you are seeking information regarding a property, use this number for identification purposes. Trustees are the ones normally processing a foreclosure. The only information given out regarding a property will be the date, time and location of a sale along with a bid if it is available or a postponement date and reason if the sale is postponed.
The auctioneer will ask if anyone wants to qualify, either before all properties are announced or before individual properties are announced. To qualify, you will need to show the auctioneer cash or cashiers checks sufficient to cover any bids you will be making. Some Trustees specify checks are to be made out to them but usually you can get cashiers check made payable to you.
The auctioneer will ask if anyone would like to bid when they are auctioning a property. Your bid should be a small increment over the opening bid. The property will not sell until the third call and some smart investors like to wait and see if anyone else is showing an interest.Take a deep breath and wait to see if other bidders are going to jump in, if no one does put your bid just before the third call.
If other bidders are interested in the same property, bids will go up usually in hundred dollar increments. Know the maximum bid you are willing to place and do not exceed that number.
Don't let your mouth overpower your wallet!
If you are the successful bidder, you will need to sign checks over to the Trustee. Usually, after all sales are complete, the auctioneer will write you a receipt and ask how title is to be held.
The Trustee can record the Trustees Deed for you or they will send you the deed along with any excess funds from your checks.
Sales are sometimes canceled for legal reasons. If this happens you will receive your funds back. Two weeks is usually enough time for a complete transaction.
It is always in your best interest to have professionals represent you or at least have them go with you.
Wishing you REI_$UCCE$$!
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John <>< Future DG & DL REI Billionaire
ASPEN PROPERTIES "I BUY (ALL CA$H), HOLD, LEASE & SELL Commercial and Residential Properties" ANY LOCATION, ANY CONDITION, ANY PRICE